Financial Crime Prevention Measures in Georgia Show Progress, Expert Says
Georgia’s efforts to address technical compliance shortcomings identified in its 2020 Mutual Evaluation Report have yielded significant results, according to sources close to the investigation.
Amendments to Anti-Money Laundering Legislation
The country’s amendments to anti-money laundering legislation introduced in 2023 have fully addressed previous deficiencies related to measures applicable to politically exposed persons. This major step forward has been hailed as a significant development in the fight against financial crime.
Recommendation Re-Rating
As a result of these efforts, Georgia has seen a re-rating on one key recommendation, Recommendation 12, which was previously deemed Partially Compliant but is now considered Compliant. The country had also requested re-ratings for several other recommendations, including:
- Recommendations 1, 6, 7, 15, 22, 23, 28, and 35, although no changes were ultimately made.
Current Status of Anti-Money Laundering and Terrorist Financing System
Georgia’s anti-money laundering and terrorist financing system currently stands at:
- Seven Recommendations being Compliant
- 22 largely Compliant
- Ten Partially Compliant
- One Non-Compliant
The country is expected to provide an update on its progress by December 2024, when it will report back to MONEYVAL.
Industry Expert Analysis
Industry experts have praised Georgia’s efforts as a significant step forward in strengthening its anti-money laundering and terrorist financing system. The move is seen as a major coup for Georgia, which has long been working to improve its reputation on these issues.
In summary, Georgia’s progress in addressing technical compliance shortcomings and re-rating recommendations demonstrates the country’s commitment to fighting financial crime. As Georgia continues to work towards improving its anti-money laundering and terrorist financing system, it is expected to make significant strides in the coming years.