Financial Crime World

Georgia Tackles Financial Crime with Tougher AML Measures

Georgia, a strategic hub between Europe and Asia, has taken significant steps to combat financial crimes by implementing robust Anti-Money Laundering (AML) measures in line with international standards. The country’s Financial Regulation Status has undergone substantial improvements, earning it compliance with global AML regulations.

The Financial Monitoring Service of Georgia

Established in 2003, the Financial Monitoring Service is responsible for combating financial crimes and has been authorized to supervise key sectors including:

  • Banks
  • Microfinance institutions
  • Foreign exchange offices
  • Investment companies
  • Insurance firms

The service’s main goal is to prevent money laundering and terrorist financing.

Monitoring Cryptocurrency Firms

In recent years, the concept of cryptocurrencies has gained mainstream attention, sparking concerns over their potential use in illegal activities. To address these risks, Georgia will begin monitoring cryptocurrency firms starting in 2023 to ensure compliance with anti-money laundering efforts and Western sanctions against Russia and Belarus.

Legislation Regulating Cryptocurrencies

The government is set to pass legislation regulating cryptocurrencies during the autumn session, aiming to harmonize Georgian laws with European Union directives while recognizing digital asset trading entities. The proposed bill aims to:

  • Prevent the misuse of cryptocurrencies for money laundering and terrorist financing
  • Position Georgia as a prominent player in the global cryptocurrency industry

High-Risk Sectors

In Georgia, high-risk sectors including:

  • Banks
  • Foreign exchange offices
  • Investment companies
  • Insurance firms
  • Real estate developers
  • Law firms
  • Accounting firms
  • Casinos
  • Jewelry dealers
  • Non-profit organizations
  • Exporters/importers

are required to implement strict AML controls. Organizations must detect suspicious transactions and report them to the relevant authorities.

Compliance Support

To ensure compliance, businesses operating in Georgia can turn to Sanction Scanner for cutting-edge technologies that help navigate the regulatory landscape and improve security.