Financial Crime World

Here is the rewritten article in Markdown format:

Georgia Takes Steps to Strengthen Sanctions Compliance and Anti-Money Laundering Efforts

Tbilisi, Georgia - The Georgian government has taken significant steps to bolster its anti-money laundering (AML) efforts and ensure compliance with international sanctions. As a country at the crossroads of Europe and Asia, Georgia plays an important role in combating financial crimes and terrorism financing.

Georgia’s Commitment to AML Efforts

Under agreements with the European Union and Moneyval, Georgia is responsible for detecting and preventing money laundering and terrorist financing. To achieve this goal, the Financial Regulation Status in Georgia has been strengthened, with the establishment of the Financial Monitoring Service in 2003 to combat financial crimes.

Recent Progress

In recent years, Georgia has taken concrete steps to align its AML regulations with international standards. In 2019, the Georgian Parliament adopted the Law on Facilitating the Prevention of Money Laundering and Financing of Terrorism, authorizing the Financial Monitoring Service to supervise banks, microfinance institutions, foreign exchange offices, investment companies, and all other financial institutions in the country.

Regulating Cryptocurrencies

The rise of cryptocurrencies has also prompted Georgia to take action. Starting in 2023, the government will begin monitoring cryptocurrency firms to prevent money laundering and ensure compliance with sanctions. This move is expected to bolster the country’s adherence to Western sanctions against Russia and Belarus.

Why Regulate Cryptocurrencies?

Georgia’s efforts to regulate cryptocurrencies are aimed at combating potential misuse for money laundering and terrorist financing, as well as positioning the country as a prominent player in the global cryptocurrency industry. The proposed local bill on crypto regulation seeks to harmonize Georgian laws with significant European Union directives while establishing legal recognition for entities engaged in digital asset trading.

High-Risk Sectors

The Financial Monitoring Service of Georgia has also published a report on the risk level of money laundering and terrorist financing by sectors, identifying high-risk areas that require AML compliance. Organizations in these sectors must implement and maintain measures to detect suspicious transactions and report any instances of financial crime to the relevant authorities.

Here are some high-risk entities in Georgia:

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

What Must These Organizations Do?

To ensure compliance, these organizations must:

  • Create an AML program that suits their risk levels
  • Conduct checks starting from the customer onboarding process

Supporting Georgian Businesses

To support Georgian businesses in navigating these regulations, Sanction Scanner offers cutting-edge technologies to ensure compliance with a wide range of laws and rules. For more information or to schedule a demo, contact us today.

Let me know if you have any further requests!