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Payment Platform Compliance

What are the main compliance requirements for payment platforms in Georgia?

Key requirements include strict AML/CFT policies, reporting to the National Bank, data protection (GDPR-like standards), and ensuring strong customer authentication.

Do I need a local compliance officer?

While not always explicitly required to be a separate hire depending on company size, having a designated person responsible for compliance who understands Georgian regulations is effectively mandatory for NBG reporting.

What happens if we fail an NBG inspection?

Failure can result in significant monetary fines, restrictions on certain business operations, or even the revocation of your payment service provider registration/license.

Is compliance a one-time process?

No, it is continuous. Regulations change, and your internal systems must adapt. Regular audits and reporting are part of the ongoing operational requirements.

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Payment Platform Compliance is a critically important process in the modern financial ecosystem, especially in Georgia, where the FinTech sector is developing rapidly. Payment service providers and platforms are obliged to strictly adhere to the regulations of the National Bank of Georgia (NBG), anti-money laundering legislation, and data security standards. This service involves not only ensuring compliance during the licensing stage but also continuous monitoring, development of internal policies, and reporting to the regulator. Payment platforms that fail to meet compliance requirements face high financial penalties, license revocation, or reputational damage. Legal.ge allows you to connect with qualified lawyers specializing in banking and finance law who will help you ensure your platform is legally sound.

What does the Payment Platform Compliance service cover?

Ensuring payment platform compliance is a multi-layered process requiring both legal and technical expertise. Specialists registered on the Legal.ge platform offer comprehensive services:

  • Development and implementation of AML/CFT policies: Creating internal control mechanisms in accordance with the legislation on the prevention of money laundering and terrorism financing, outlining client identification and verification (KYC/KYB) procedures.
  • Relations with the regulator: Preparing and submitting mandatory reports to the National Bank of Georgia within established deadlines, as well as managing communication during inspections.
  • Data protection and cybersecurity: Implementing personal data protection legislation and information security standards (e.g., ISO 27001) in the platform's operations.
  • Risk management: Introducing operational and financial risk assessment systems, defining rules for monitoring suspicious transactions.
  • Consumer rights protection: Drafting Terms of Service and Privacy Policies that protect both the company and the user.
  • Transaction monitoring: Legal audit of automated suspicious transaction detection systems and ensuring compliance with NBG requirements.

Common scenarios and needs

In practice, there are frequent cases where companies need professional assistance regarding compliance:

  • Launching a new product: When a payment provider introduces a new service (e.g., a digital wallet or QR payments) and needs a legal assessment regarding regulatory requirements.
  • National Bank inspection: When the regulator initiates a scheduled or unscheduled inspection, and the company needs legal support to submit documentation correctly.
  • Detection of suspicious transactions: When the system flags suspicious transfers, and the company must decide how to respond in full compliance with the law (freezing the account, reporting information to the Financial Monitoring Service).
  • Relations with partner banks: When commercial banks request compliance documentation from the payment provider to open or maintain correspondent accounts.

Georgian Legal Framework

The activity of payment platforms in Georgia is regulated by strict legislative acts, knowledge of which is essential for any player in the market:

  • Law of Georgia on Payment Systems and Payment Services: This is the primary law defining the rights and obligations of payment service providers, licensing conditions, and user rights.
  • Law of Georgia on Facilitating the Prevention of Money Laundering and the Financing of Terrorism: Obliges financial institutions to implement preventive measures and report suspicious transactions.
  • Normative Acts of the National Bank of Georgia: Orders of the President of the National Bank regulating the registration of payment service providers, minimum capital amounts, and information security rules.
  • Law of Georgia on Personal Data Protection: Regulates the processing, storage, and transfer of financial and personal data to third parties.

Service Process Step-by-Step

The process of working with a specialist on Legal.ge usually involves the following stages:

  1. Initial Audit: Checking existing documentation, procedures, and technical systems for compliance with regulatory requirements.
  2. Gap Analysis: Identifying discrepancies and assessing risks, developing an action plan.
  3. Development of Policies and Procedures: Preparing or updating internal legal acts (AML, IT Security, Risk Management).
  4. Implementation and Training: Retraining employees according to new procedures and legal oversight of systemic changes.
  5. Ongoing Support: Regular monitoring, updating on legislative changes, and assistance in the reporting process.

Why Legal.ge?

Legal.ge is the only platform in Georgia that brings together verified and experienced lawyers in banking and FinTech law. Through us, you don't waste time searching for incompetent staff. Here you will find specialists who have direct experience dealing with the National Bank and know how to protect your business from fines and legal problems. Find your trusted legal partner on Legal.ge and manage your payment business with peace of mind.

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Specialists for this service

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