Here is the converted article in Markdown format:
FATF Recommendations in Georgia: A Mixed Bag, Says Follow-Up Report
==============================================
Georgia’s efforts to combat money laundering and terrorist financing have been deemed “largely compliant” by the Financial Action Task Force (FATF), according to its 2023 follow-up report. However, the country still faces some challenges in implementing certain technical requirements.
Progress and Challenges
The FATF recommendations are a set of standards aimed at preventing the misuse of financial systems for illicit activities. Georgia’s report shows that it has made progress in several areas:
- Assessing risk and applying a risk-based approach (R.1)
- National cooperation and coordination (R.2)
- Targeting financial sanctions related to terrorism and terrorist financing (R.6)
However, Georgia still lags behind in other areas:
- Confiscation and provisional measures (R.4) - only “partially compliant”
- Non-profit organizations (R.8) - deemed “non-compliant”
- Transparency and beneficial ownership of legal persons and arrangements (R.24 and R.25) - deemed “non-compliant”
Positive Developments
The report also highlights some positive developments:
- Implementing customer due diligence (R.10)
- Record keeping (R.11)
- Internal controls and foreign branches and subsidiaries (R.18)
Additionally, Georgia has made significant strides in regulating and supervising financial institutions (R.26) and DNFBPs (R.28).
Challenges Ahead
Despite these advancements, Georgia still faces challenges in areas such as:
- New technologies (R.15)
- Wire transfers (R.16)
- Reliance on third parties (R.17)
The report also notes that the country needs to improve its powers of supervisors (R.27), regulation and supervision of DNFBPs (R.28), and mutual legal assistance (R.37).
Conclusion
Overall, while Georgia’s efforts have been deemed “largely compliant” by the FATF, there is still work to be done to ensure that the country’s financial system is robust and effective in combating money laundering and terrorist financing.
The FATF has encouraged Georgia to continue strengthening its AML/CFT framework, particularly in areas where it still falls short. The country is expected to submit a follow-up report next year to demonstrate progress on the recommendations.