The Lari as the Sole Lawful Means of Payment
Georgia's monetary unit is the lari, which consists of 100 tetri. The lari is the only lawful means of payment on the territory of Georgia, save for free industrial zones, free trade points and cases defined by the National Bank. Where an entrepreneur offers for sale property or services in Georgia, or advertises them, the price must be expressed only in lari; a different rule may be established only by a legal act of the National Bank. Cash settlement follows the rounding principle — the amount is rounded up or down to the nearest multiple of 5, the method and procedure of rounding being set by the National Bank's council. Banknotes and coins put into circulation are the unconditional obligation of the National Bank at nominal value, except banknotes and coins withdrawn from circulation or classified as numismatic values. For FX compliance this means that every public offer of the entrepreneur — a shop window, price list, website or advertisement — must be expressed in lari, and cash payments apply the rounding principle at the moment of sale. Technically these are two requirements in one: the unit of price and the mechanics of payment — and both are objects of supervision.
Supervision of Microfinance Organizations
Under Article 50 of the law, the National Bank may supervise the activity of a microfinance organization: this includes registration and its revocation, inspection and regulation, written instructions, and the imposition of additional requirements, restrictions and sanctions. The Bank may demand information on the sources of the origin of capital and on the direct and beneficial owners of a significant share — including the origin of property or monetary funds — and establish norms for the classification of assets and reserves for possible losses, the minimum supervisory capital and the liquidation procedure, as well as suitability criteria for the administrator. It may suspend or restrict particular operations or the attraction of funds, prohibit the distribution of profit, the accrual and payment of dividends, increases of remuneration and the payment of bonuses, and demand additional capital. The administrator may have the authority to sign suspended, a monetary fine imposed and dismissal demanded. The Bank also audits the organization — taking any information from accounting documents and reporting components, including confidential information. Registration and fine procedures are defined by the Bank's normative acts, and the fine goes to the state budget. The model of supervision is uniform: the regulator's demands stretch from capital to administrators, and a breach entails both organizational and personal sanctions.