Georgia Strengthens Anti-Money Laundering Efforts to Align with International Standards
Tbilisi, Georgia - In recent years, Georgia has made significant strides in bolstering its anti-money laundering (AML) efforts and aligning itself with international standards, positioning itself as a key player in the global fight against financial crimes.
International Agreements and Responsibilities
Under agreements with the European Union and Moneyval, Georgia is responsible for combating and detecting money laundering and terrorist financing. The country’s Financial Monitoring Service, established in 2003, plays a crucial role in preventing illicit income legalization and ensuring compliance with international AML regulations.
Recent Legislation and Supervision
In 2019, the Georgian Parliament adopted the Law on Facilitating the Prevention of Money Laundering and Financing of Terrorism, empowering the Financial Monitoring Service to supervise banks, microfinance institutions, foreign exchange offices, investment companies, and other financial institutions in the country.
Monitoring Cryptocurrency Firms
As cryptocurrencies have gained mainstream acceptance, Georgia has taken steps to monitor cryptocurrency firms to prevent money laundering and ensure compliance with sanctions. Starting in 2023, the country will begin scrutinizing Virtual Asset Service Providers (VASPs) in line with anti-money laundering efforts.
Upcoming Legislation
The Georgian government is set to greenlight cryptocurrency-related legislation during its autumn session, which aims to harmonize local laws with significant European Union directives while establishing legal recognition for entities engaged in digital asset trading.
High-Risk Sectors Under Scrutiny
The Financial Monitoring Service of Georgia has identified various high-risk sectors that must ensure AML compliance. These sectors include:
- Banks and financial institutions
- Foreign exchange offices
- Investment companies
- Insurance companies
- Real estate and property developers
- Law firms and legal professionals
- Accounting firms and auditors
- Casinos and gambling establishments
- Jewelry and precious metals dealers
- Non-profit organizations
- Exporters and importers
Requirements for High-Risk Organizations
To meet the requirements of the law on Facilitating the Prevention of Illicit Income Legalization, high-risk organizations in Georgia must:
- Implement and maintain measures for handling suspicious transactions
- Detect customers’ money originating from unlawful activities or other money laundering activities
- Report all identified instances of suspicious activities to the relevant authorities
Georgia’s AML Efforts Receive Support
Sanction Scanner, a leading provider of anti-money laundering solutions, has pledged its support to Georgian businesses in ensuring compliance with a wide range of laws and regulations. The company offers cutting-edge technologies designed to help Georgian businesses successfully navigate the regulatory world.
Get Assistance from Sanction Scanner
For more information on how Sanction Scanner can assist your business in Georgia, please contact us or request a demo today.