Financial Crime World

Title: Georgia’s Anti-Money Laundering Measures Bolstered, But Further Progress Needed, According to MONEYVAL Report

Georgia’s Advancements in Combatting Money Laundering and Terrorist Financing

The Council of Europe’s anti-money laundering body, MONEYVAL, has published a new report commending Georgia’s progress in the fight against money laundering and terrorist financing, while urging for more advancements.

Significant Progress in Enhancing Financial Intelligence Unit’s Powers

The Financial Monitoring Service (FMS), Georgia’s Financial Intelligence Unit, saw significant improvements in its powers to share information and analysis with law enforcement authorities, addressing a notable issue from the previous report.

  • Improved information-sharing capabilities
  • Strengthened collaboration between the FMS and law enforcement agencies

Remaining Concerns and Areas for Improvement

Despite these advancements, several issues persist:

  1. Lack of a clear requirement for the FMS to perform operational and strategic analysis
  2. Limited scope of Georgia’s money laundering definition

Legislative, Regulatory, and Institutional Measures

Several measures were taken in the areas of legislation, regulation, and institutions:

  • Electronic reporting requirements for online casinos
  • Criminal record checks for casino beneficial owners
  • Stricter sanctions for AML/CFT breaches in the casino sector
  • Establishment of a comprehensive regulatory framework for investment funds

Upgrading Ratings for FATF Recommendations

While these measures were insufficient to bring about upgrades in ratings for Recommendations 22, 28, or 35, Georgia made significant strides in implementing them:

  • 6 of 40 FATF recommendations now fully compliant
  • Georgia has minor deficiencies in implementing 22 recommendations with a “largely compliant” rating
  • 11 recommendations remain “partially compliant”
  • One recommendation received a “non-compliant” rating for the need to review laws and regulations to prevent non-profit organizations from being used for terrorist financing

Expectations for Further Progress

Georgia is expected to update MONEYVAL on its anti-money laundering measures progress within the next year.

[Insert Link to the Report]

Strasbourg, 28 November 2022.