AML (Anti-Money Laundering) compliance programs are an essential condition for modern business functioning in Georgia. With the adoption of international standards (Moneyval, FATF), Georgia has significantly tightened regulations aimed at preventing the legalization of illicit income. The legislation applies not only to banks but also to a wide circle of "Accountable Persons": casinos, real estate agents, notaries, auditors, dealers in precious stones, and Virtual Asset Service Providers (VASPs). An AML compliance program involves a set of internal company policies and procedures aimed at preventing financial crime. The absence or ineffectiveness of such a program leads to multi-million fines and reputational damage. This service helps businesses create, implement, and manage effective AML systems to fully comply with Georgian legislation.
What Does the AML Compliance Program Service Cover?
AML specialists offer comprehensive consulting services:
- Internal Policy Development: Writing AML/CFT (Combating the Financing of Terrorism) instructions, manuals, and procedures tailored to the company's risks.
- KYC/CDD Implementation: Creating mechanisms for Customer Identification and Verification (Know Your Customer) and Customer Due Diligence.
- Risk Assessment: Determining the risk profile of the business, clients, and products (Enterprise-Wide Risk Assessment).
- Employee Training: Regular training of personnel in recognizing and reacting to suspicious transactions.
- Reporting to FMS: Setting up the process for reporting suspicious transactions (STR/SAR) and registering on the Financial Monitoring Service portal.
Common Scenarios and Business Needs
AML compliance is critical for the following types of organizations and situations:
- New Fintech Startups: A company plans to launch an e-wallet or crypto exchange. To obtain a license, it needs a comprehensive AML policy and a compliance officer.
- Real Estate Developers: Due to large transactions, developers are obliged to check the source of funds of buyers to prevent black money investment in construction.
- Casinos and Gambling: Due to high risk, casinos need strict control over players and monitoring of large volume transactions.
- Regulatory Inspection: The National Bank or the Registry of Accountants is conducting a scheduled inspection. The company needs a preliminary audit to correct deficiencies.
Georgian Legal Framework
The main regulatory document in this field is the Law of Georgia on Facilitating the Prevention of Money Laundering and Terrorism Financing. The law defines accountable persons and their obligations. Additionally, orders of the Head of the Financial Monitoring Service of Georgia (FMS) apply, detailing rules for information collection and submission. For the financial sector, regulations of the National Bank of Georgia also apply, such as "On Management of Money Laundering Risks by Commercial Banks." Sanctions for violating the law can be extremely severe, ranging from monetary fines (which can reach millions of Lari) to the revocation of the operating license.
Service Process: What to Expect
The specialist diagnoses your business model to determine if you are an "Accountable Person" and what risks your activity entails. Then, documentation ("AML Package") is prepared, including client questionnaires (KYC forms), internal orders, and monitoring rules. After implementing the program, the consultant conducts training for employees. If necessary, the lawyer will assist in communicating with the Financial Monitoring Service and during the inspection process.
Why Choose Legal.ge?
AML regulations are constantly changing and becoming more complex. A mistake in this field is very costly. Legal.ge features certified AML experts (CAMS, ICA) and lawyers with practical experience in setting up financial monitoring systems. They will help you not only with formal compliance but also with real risk management. Protect your business from sanctions with help from Legal.ge.
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