Financial Crime World

Here’s the rewritten article in markdown format:

Georgia Takes Aim at Money Laundering with Tough AML Regulations

Tbilisi, Georgia - In its quest to align itself with international standards and combat financial crimes effectively, Georgia has been bolstering its Anti-Money Laundering (AML) efforts. The country plays a crucial role in the global fight against money laundering and terrorism financing, having signed agreements with the European Union and Moneyval.

Assessing Risks

To assess the risks of money laundering and terrorism financing, Georgia must comply with Financial Action Task Force (FATF) standards. The country has made significant strides in this regard, establishing the Financial Monitoring Service of Georgia in 2003 to combat financial crimes under the law “On Facilitating the Prevention of Illicit Income Legalization”.

Strengthening Regulations

In 2019, the Georgian Parliament adopted the Law on Facilitating the Prevention of Money Laundering and Financing of Terrorism, empowering the Financial Monitoring Service to supervise banks, microfinance institutions, foreign exchange offices, investment companies, and other financial institutions.

Rise of Cryptocurrencies

The rise of cryptocurrencies has also prompted Georgia to take action. Starting in 2023, the country will begin monitoring cryptocurrency firms to prevent money laundering and ensure compliance with sanctions. This move is expected to bolster Georgia’s adherence to Western sanctions against Russia and Belarus.

Proposed Legislation

To achieve this goal, the Georgian government plans to greenlight cryptocurrency-related legislation during the autumn session. The proposed local bill on crypto regulation aims to harmonize Georgian laws with significant European Union directives while establishing legal recognition for entities engaged in digital asset trading.

High-Risk Sectors

The Financial Monitoring Service of Georgia has identified high-risk sectors that are required to ensure AML compliance. These sectors include:

  • Banks and financial institutions
  • Foreign exchange offices
  • Investment companies
  • Insurance companies
  • Real estate and property developers
  • Law firms and legal professionals
  • Accounting firms and auditors
  • Casinos and gambling establishments
  • Jewelry and precious metals dealers
  • Non-profit organizations
  • Exporters and importers

Combating Financial Crime

To combat the threat of financial crime, high-risk organizations must implement and maintain measures for handling suspicious transactions. They must also detect customers’ money originating from unlawful activities or other money laundering activities and report all identified instances of suspicious activities to the relevant authorities.

Ensuring Compliance

Businesses operating in Georgia must prioritize ensuring compliance with a wide range of laws and rules to maintain the integrity and stability of the country’s financial sector. Sanction Scanner is dedicated to providing cutting-edge technologies to assist Georgian businesses in successfully navigating the regulatory world.