Digital Wallet Compliance is a critical component of the Fintech industry in Georgia, regulating the activities of electronic money institutions and payment service providers. Georgia is actively implementing modern digital payment systems, which requires adherence to strict regulatory standards. A digital wallet is not just a technological application; it is a financial platform subject to oversight by the National Bank of Georgia. Ensuring compliance involves full satisfaction of Anti-Money Laundering (AML) standards, consumer protection, and information security norms. Any flaw in the compliance system can be a ground for license revocation or heavy fines. The Legal.ge platform connects you with qualified lawyers and compliance experts who will help in the legal structuring of your digital wallet and harmonization with regulatory requirements.
What does the Digital Wallet Compliance service cover?
Legal services related to digital wallet compliance involve complex support for Fintech companies. The service covers: managing the licensing process for an Electronic Money Institution (EMI) or Payment Service Provider (PSP); developing internal AML/CFT policies and procedures; validating remote client "due diligence" (KYC/CDD) procedures; drafting personal data protection policies; preparing user Terms of Service in accordance with NBG standards; legal support for information security audits; setting up transaction monitoring systems; and representation in communication with the National Bank of Georgia and the Financial Monitoring Service. Lawyers ensure that your digital product is fully protected from legal risks and acceptable to the regulator.
Common real-world scenarios
In practice, the need for digital wallet compliance arises at various stages of business development. A typical scenario is a "Startup Launch," where a new Fintech company needs to obtain a license and create internal control mechanisms from scratch. A second scenario concerns "International Expansion," where a foreign digital wallet wants to enter the Georgian market and needs adaptation to local regulations. A third scenario is the implementation of "Digital Identification," requiring NBG approval for a remote verification model. It is also common for a company to undergo a regulatory inspection and need legal assistance to eliminate deficiencies or appeal sanctions. Another important scenario is cryptocurrency integration into a digital wallet, requiring additional compliance with Virtual Asset Service Provider (VASP) regulations.
Georgian Legal Framework
The activity of digital wallets in Georgia is regulated by the Law of Georgia on Payment Systems and Payment Services. This law defines the rules for electronic money emission and execution of payment operations. Crucial is the Law of Georgia on Facilitating the Prevention of Money Laundering and Terrorism Financing, establishing strict requirements for client identification and transaction monitoring. Orders of the President of the National Bank of Georgia detail the rule for registration and supervision of payment service providers. The Law of Georgia on Personal Data Protection is also in effect, which is particularly relevant in the context of digital financial services. A lawyer's participation is essential for the correct interpretation of these laws to avoid legal discrepancies.
Step-by-step process when working with a specialist
The compliance process begins with a legal audit (Gap Analysis) of the business model. In the first stage, the lawyer identifies discrepancies between existing processes and regulatory requirements. In the second stage, a full documentary package is prepared, including internal regulations and user agreements. The third stage involves consulting the technical team on automating AML and KYC systems. In the fourth stage, documentation is submitted to the National Bank and responses are made to the regulator's remarks. The fifth stage involves training staff on compliance issues and implementing a periodic audit system. The specialist ensures the company not only receives a license but also maintains it through ongoing compliance.
Why choose Legal.ge?
Fintech is one of the fastest-growing and most complex fields, where a synthesis of technological and legal knowledge is essential. On the Legal.ge platform, you will find lawyers and compliance experts who have extensive experience working in the Georgian Fintech sector. Our specialists will help you easily implement complex regulations, minimizing the risks of business disruption. Through Legal.ge, you have the opportunity to receive qualified consultation on both licensing and ongoing operational compliance issues. Find your Fintech lawyer on Legal.ge and ensure the success and security of your digital wallet. Our platform offers a reliable partnership for the legal protection of innovative financial solutions.
Updated: ...