New Anti-Money Laundering Law in Georgia: Definitions and Obligations for Accountable Persons

The Government of Georgia has enacted a new law titled “Law of Georgia on Facilitating the Prevention of Money Laundering and the Financing of Terrorism” to strengthen the legal framework against financial crimes, including money laundering and terrorism financing. This article outlines the key definitions and obligations for accountable persons as outlined in the new law.

Chapter 1 - General Provisions

Article 1 - Purpose and Scope of the Law

Preventing, detecting, and suppressing money laundering and the financing of terrorism and weapons of mass destruction.
Applies to all accountable persons, supervisory bodies, and those carrying out investigations and criminal prosecutions.

Article 2 - Definition of Terms

Accountable person: Financial institutions and those performing non-financial activities.
Beneficial owner: Natural person who holds controlling ownership or ultimate control.
Transaction: Any transaction as defined in the Civil Code of Georgia.

Article 3 - Accountable Persons

Financial institutions and those performing non-financial activities.
Different obligations apply depending on the type of accountable person.

Article 5 - National Report and Action Plan for the Evaluation of Risks

Government approval of a national report and action plan for evaluating and managing risks.

Article 6 - Interagency Commission and Working Group

Commission and working group establishment for development, implementation, monitoring, and update of the national report and action plan.

Article 7 - Recording and Delivering Information

Competent authorities must record and submit information to the working group.

Article 8 - Evaluation and Management of Risks by Accountable Persons

Accountable persons must establish and maintain an effective system for evaluating and managing risks.

Article 9 - Low Risk Service/Product

Accountable person may be exempted from certain requirements when providing a low-risk service or product.

Chapter III - Preventive Measures

Article 10 - Preventive Measures

Implement preventive measures in certain circumstances.

Article 11 - Grounds for the Implementation of Preventive Measures

Establishment of a business relationship, single transaction exceeding a certain amount, or doubt about the accuracy of identification data.

Article 12 - Procedure for the Implementation of Preventive Measures

Implement preventive measures according to risk level and within appropriate periodicity.
Electronic implementation for entering business relationships or transactions.

The new Georgian money laundering and terrorism financing prevention law imposes several obligations on accountable persons, with the ultimate goal of bolstering the legal framework against financial crimes. Accountable persons must improve their risk evaluation and managerial procedures, as outlined in this new legislation.