Georgia’s Anti-Money Laundering Measures Under Scrutiny: MONEYVAL Releases 2nd Enhanced Follow-up Report

The Council of Europe’s Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (MONEYVAL) has released the 2nd Enhanced Follow-up Report on Georgia’s progress in strengthening its Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) measures.

Assessment of Georgia’s Progress

Identified improvements: The report acknowledges several improvements made by Georgia since its initial evaluation.
Desired re-ratings not secured: However, Georgia did not secure all the desired re-ratings for various recommendations.
Collaboration: A team of experts from Isle of Man, Jersey, North Macedonia, and Romania collaborated with the MONEYVAL Secretariat to analyze Georgia’s progress.

Evaluation Focus: National Risk Assessment

Comprehensive assessment: Georgia conducted a comprehensive risk assessment in 2019.
Key areas for improvement: The report underscores the need for advancements in several areas including the assessment of specific money laundering risks, real estate sector, trade-based money laundering, and terrorist financing risks.

Gaps in AML/CFT Implementation and Application

Simplified measures: Deficiencies were identified regarding the application of simplified measures for lower-risk customers.
Use of exemptions: The use of exemptions also presented gaps in the implementation and application of AML/CFT requirements.

Future Expectations

ENFP process: Georgia will remain in an Enhanced Follow-up Process (ENFP) with the expectation to report back within one year, in December 2024.
Strengthening framework: The country is encouraged to address the deficiencies identified to strengthen its AML/CFT framework and improve its capacity to fight money laundering and terrorism financing more effectively.