Financial Sanctions Enforcement in Georgia: A New Era of Transparency and Compliance

In February 2022, the National Bank of Georgia took a landmark step towards ensuring full compliance with international financial sanctions imposed on Russia. Since then, Georgian financial institutions have been operating in line with these restrictive measures, earning the country a reputation as a model of transparency and cooperation.

A Significant Precedent: Sanctions Applied to a Georgian Citizen

The recent application of sanctions to a Georgian citizen marks a significant precedent in this process. The National Bank of Georgia is committed to upholding the Constitution of Georgia and the principle of presumption of innocence, ensuring that international sanctions are only applied to citizens who have been convicted by a court in accordance with Georgian law.

Strengthening Regulations

To further safeguard the rights and freedoms of its citizens, the National Bank has amended its regulations to clarify the scope of sanctions. The revised decree stipulates that:

• Sanctions apply to Georgian citizens who have been issued a legally binding conviction by a Georgian court.
• Legal entities registered in Georgia owned by sanctioned individuals are also subject to sanctions.

Enhanced Monitoring and International Cooperation

The National Bank will continue to closely monitor the financial sector for signs of crime and evasion of restrictive measures, working closely with relevant authorities to respond swiftly and effectively. The institution is also committed to sharing details of its decision-making process with international partners, underscoring its commitment to transparency and cooperation in the enforcement of financial sanctions.

A Strong Message from Georgia

As Georgia solidifies its position as a leader in financial sanctions compliance, it has sent a strong message to the global community: the country will not tolerate any attempts to evade or circumvent restrictive measures, and is committed to upholding the highest standards of integrity and accountability.