GEORGIA ENHANCES KNOW YOUR CUSTOMER (KYC) REQUIREMENTS FOR BANK ACCOUNT OPENING

Stricter Regulations to Prevent Money Laundering

TBILISI, GEORGIA - The Georgian government has introduced updated Know Your Customer (KYC) requirements for individuals seeking to open bank accounts in the country. These new regulations aim to prevent money laundering and ensure that banks have a clear understanding of their customers’ financial activities.

What You Need to Know:

• Personal Information: Individuals applying for a bank account must provide detailed personal information, including:
  • Full name
  • Surname
  • Passport number (for non-residents)
• Purpose of Visit and Account Use: Applicants must specify the purpose of their visit to Georgia, the duration of their stay, and the reason for opening a bank account in the country. This includes information on how they plan to use the account.
• Source of Wealth: Applicants are required to disclose the source of their wealth, including:
  • Business or commercial activities that have contributed to their overall net worth
  • Income from sales of property
  • Investments in securities
  • Inheritances
  • Dividends

Consequences of Providing Incomplete or False Information:

By signing the bank application, customers acknowledge that they have provided accurate and complete information. They also authorize the bank to process and maintain their personal data. Failure to provide correct information may result in severe consequences.

Government’s Efforts to Enhance Financial Transparency:

The updated KYC requirements are part of Georgia’s efforts to enhance financial transparency and prevent money laundering in the country. The regulations apply to all individuals seeking to open a bank account in Georgia, including residents and non-residents.

“It is essential for banks to have a clear understanding of their customers’ financial activities to prevent money laundering and ensure that our financial system operates transparently,” said a spokesperson for the Georgian government. “These updated KYC requirements will help us achieve this goal and maintain the integrity of our financial sector.”