Financial Intelligence Unit in Georgia Looks to Baltic Countries for Regulatory Guidance

Georgia’s National Bank and Financial Monitoring Service recently conducted a study visit to Riga, Latvia, to strengthen its regulatory framework against the growing risks associated with virtual assets.

Key Takeaways from the Study Visit

• Georgian officials gained valuable insights into Virtual Asset Service Providers (VASP) licensing processes, risk assessment, monitoring, and supervision during their five-day exchange with regulators, supervisors, and representatives from non-profit organizations and the private sector from Estonia, Latvia, and Lithuania.
• The study visit brought together over 15 facilitators and 10 participants from Georgia and the Baltic countries for in-depth discussions on how to effectively oversee VASPs and mitigate the risks of money laundering and terrorist financing.

Expert Insights Shared During Interactive Sessions

• Facilitators from various organizations in Latvia shared their expertise on crypto-assets regulation and VASP supervision, including representatives from:
  • Financial Intelligence Unit (FIU) of Latvia
  • Financial Crime Investigation Service of Lithuania
  • Financial Intelligence Unit of Estonia
  • Bank of Latvia
  • Blockchain Association of Latvia

Impact of the Study Visit on Georgia’s Regulatory Landscape

• The study visit is expected to have a lasting impact on Georgia’s virtual asset regulatory landscape, with officials committed to strengthening their country’s compliance with international standards set by FATF and other global regulatory bodies.
• Georgian officials praised the study visit as a “game-changer” for their country’s approach to VASP supervision, saying that learning from the experiences of Estonia, Latvia, and Lithuania will enable them to avoid mistakes and shape a more effective regulatory framework.