Financial Crime World

Georgia’s Financial Regulatory Landscape Shapes Up: New AML Requirements for Banks, Crypto Firms, and High-Risk Sectors

Georgia, a country straddling Europe and Asia, is taking active steps to enhance its Anti-Money Laundering (AML) measures, making a commitment to combat financial crimes and terrorism financing in line with global standards.

Georgia’s Regulatory Milestones

  • Establishment of Financial Monitoring Service (2003): In 2003, the Georgian Government established the Financial Monitoring Service of Georgia to prevent money laundering and terrorism financing under the nation’s law “On Facilitating the Prevention of Illicit Income Legalization.”
  • Extended Jurisdiction (2019): In 2019, Parliament passed the Law on Facilitating the Prevention of Money Laundering and Financing of Terrorism, extending the Financial Monitoring Service’s jurisdiction to oversee banks, investment companies, microfinance institutions, foreign exchange offices, and insurance firms.

A New Era for Crypto Regulations (2023)

  • Tighter AML rules: Starting from 2023, Georgia, known for its crypto-friendly stance among post-Soviet states, will impose stricter AML rules on Virtual Asset Service Providers (VASPs) to prevent financial crimes and comply with Western sanctions against Russia and Belarus.

High-Risk Sectors and New Regulations

Organizations in high-risk sectors are required to adhere to stringent AML requirements:

  1. AML controls: Organizations must establish AML controls to protect themselves from financial crimes.
  2. Supervision: The Financial Monitoring Service Of Georgia supervises these organizations.
  3. Penalties: Failure to comply with these regulations may result in penalties.

Suspicious Transaction Reporting and AML Programs

  • Suspicious transactions: Organizations must report and detect suspicious transactions and customers suspected of money laundering or other unlawful activities.
  • High-risk sectors: High-risk sectors in Georgia include banks, foreign exchange offices, investment companies, and real estate developers, among others.

Georgia’s Businesses and AML Solutions

With a robust regulatory environment, Georgian businesses need advanced solutions to navigate the complex world of AML regulations effectively. Sanction Scanner offers cutting-edge technologies to help these companies ensure improved security and compliance. Contact us now for a demo or consultation.