Financial Crime World

Georgia’s Crackdown on Financial Crimes: AML Regulations and New Crypto Monitoring Measures

Georgia, a country situated at the intersection of Europe and Asia, is making significant strides in combating financial crimes and aligning with international anti-money laundering (AML) standards. Here’s an overview of Georgia’s commitment to countering money laundering and terrorist financing, as well as its recently announced intentions to regulate cryptocurrencies.

Adhering to International Anti-Money Laundering Standards

Georgia, obligated to counter money laundering and terrorist financing, has agreements with the European Union (EU) and Moneyval. Moneyval evaluates compliance with the Financial Action Task Force (FATF) standards, which are crucial for countries to assess and reduce financial crime risks.

Combating Financial Crimes: AML Regulations in Georgia

Georgia has taken steps to address financial crimes since 2003. The country established the Financial Monitoring Service (FMSG) under the “On Facilitating the Prevention of Illicit Income Legalization” law to combat money laundering and terrorist financing activities. The FMSG primarily focuses on monitoring financial institutions within the nation.

In 2019, the Georgian Parliament passed the Law on Facilitating the Prevention of Money Laundering and Financing of Terrorism. This law grants the FMSG supervision over all financial institutions in the country, including:

  • Banks
  • Microfinance institutions
  • Foreign exchange offices
  • Investment companies

Regulating Cryptocurrencies in Georgia

As cryptocurrencies gain prominence and transition from a niche asset class to a mainstream financial instrument, countries are grappling with regulations. In 2023, Georgia—a progressive, post-Soviet nation—intends to police cryptocurrency firms in line with AML regulations. The objective is to strengthen Georgia’s adherence to Western sanctions against Russia and Belarus and position the country as a notable player in the global cryptocurrency industry. Upcoming regulations for cryptocurrency-related businesses in Georgia include:

  • Harmonizing Georgian laws with significant EU directives
  • Granting legal recognition to digital asset trading entities

AML Compliance: Mandatory for All High-Risk Sectors

All high-risk sectors are required to maintain AML compliance under Georgian law. These organizations must deploy adequate measures to protect themselves from financial crime threats and undergo supervision by the FMSG. Failure to adhere to AML regulations may result in penalties.

AML Regulations: Key Requirements for Georgian Businesses

AML regulations dictate the following required measures for Georgian businesses:

  • Scrutinizing suspicious transactions
  • Reporting identified instances of money laundering or terrorist financing to the relevant authorities
  • Implementing tailored AML programs
  • Subjecting customers to rigorous checks
  • Conducting ongoing customer monitoring and transaction controls

Prioritize AML Compliance to Safeguard Your Business

Georgian businesses operating in various industries need to prioritize AML compliance as part of the overall effort to safeguard the integrity and stability of the country’s financial sector.

Sanction Scanner offers advanced technologies tailored to help Georgian businesses remain compliant with extensive regulations and safeguard their interests. Connect with us today for a demonstration to ensure your business’s security.