Financial Crime World

Georgia Tackles Money Laundering with Tough Penalties and Enhanced Due Diligence Measures

Combating Financial Crimes in Georgia

TBILISI, GEORGIA - In a bid to combat money laundering and terrorist financing activities, Georgia has implemented enhanced due diligence measures for high-risk customers, including politically exposed persons. The country’s efforts have earned praise from international bodies for its commitment to collaborating with federal authorities and actively participating in global anti-money laundering initiatives.

Severe Penalties for Non-Compliance

  • Financial institutions in Georgia that fail to comply with Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations face severe penalties.
  • The National Bank of Georgia, the Financial Monitoring Service of Georgia, and other relevant authorities enforce these rules, which can result in administrative fines ranging from GEL 5,000 to GEL 50,000.
  • Financial institutions may have their licenses suspended or revoked for non-compliance, while individuals can face criminal charges with penalties including imprisonment for up to ten years.

Industry-Specific Requirements

  • Georgia has also implemented industry-specific AML and KYC requirements for sectors such as real estate and legal services.
  • Real estate agents, brokers, and intermediaries must conduct customer due diligence measures, including identifying customers and verifying their identities.
  • Lawyers are required to identify clients and verify their identities before providing services.

Balancing AML/KYC with Privacy Considerations

  • Georgia has taken steps to balance its AML/KYC regulations with privacy considerations for individuals.
  • The country’s data protection laws regulate how personal data is collected, used, and disclosed by both public and private entities, ensuring that personal data is processed lawfully and fairly.
  • Certain exemptions have been allowed for information disclosure based on legitimate interests or when required by law enforcement agencies.

International Cooperation

  • Georgia’s efforts to combat money laundering and terrorist financing activities have earned praise from international bodies, which recognize its commitment to collaborating with federal authorities and actively participating in global anti-money laundering initiatives.
  • The country’s enhanced due diligence measures and industry-specific requirements demonstrate a strong commitment to preventing and combating financial crimes.

Conclusion

By implementing tough penalties for non-compliance and balancing AML/KYC regulations with privacy considerations, Georgia is taking a proactive approach to ensuring the integrity of its financial system and protecting individuals from money laundering and terrorist financing activities.