GEORGIA’S ANTI-MONEY LAUNDERING REGULATIONS: PROGRESS MADE, BUT MORE WORK TO BE DONE

Introduction

The Council of Europe’s anti-money laundering body, MONEYVAL, has released a follow-up report on Georgia’s efforts to combat money laundering and terrorist financing. The report concludes that while significant progress has been made, further improvements are necessary.

Progress Made in Addressing Politically Exposed Persons (PEPs)

• Strengthened measures for tackling PEPs: Georgia has amended its anti-money laundering legislation in 2023 to address previous shortcomings.
• Improved compliance: The country’s efforts have led to an improvement from “partially compliant” to “compliant” in this area.

Remaining Challenges

• Reporting suspicious transactions: Georgia still faces challenges in addressing recommendations related to reporting suspicious transactions.
• Customer due diligence: The country has not yet fully implemented measures for customer due diligence.
• National risk assessment: Georgia needs to implement a national risk assessment to identify and mitigate potential risks.

Importance of Continued Cooperation

MONEYVAL experts emphasize the importance of continued cooperation between national authorities and international partners to strengthen Georgia’s financial system. This includes:

• Implementing effective anti-money laundering measures
• Preventing terrorist financing
• Strengthening the country’s financial system