Private Banking Compliance is a set of regulations, standards, and ethical norms that banks and their high-net-worth (HNW) clients must satisfy. As Georgia establishes itself as a regional financial hub, private banking and wealth management services operate under high standards, necessitating strict adherence to international Anti-Money Laundering (AML) and Know Your Customer (KYC) rules. Compliance services help clients navigate bank filters smoothly, justify the source of wealth, and ensure the transparency of their financial operations, which is vital for maintaining account stability and long-term banking relationships.
What Does Private Banking Compliance Cover?
This service aims to optimize processes for financial institutions and overcome barriers for individual clients:
- AML/KYC Audit and Consulting: Preparing the client's financial profile according to specific banking requirements.
- Source of Wealth/Source of Funds (SoW/SoF) Justification: Collecting and systematizing documentary evidence to confirm the legality of capital.
- International Tax Transparency (CRS/FATCA): Ensuring client accounts comply with standards for the automatic exchange of financial information.
- PEP (Politically Exposed Person) Management: Assessing specific risks and implementing additional control mechanisms for high-profile individuals.
- Sanctions Compliance: Screening transactions and entities against international and local sanctions lists.
- Internal Policy Development: Assisting banks in drafting compliance manuals according to National Bank of Georgia mandates.
Common Scenarios Requiring Compliance Support
1) High-net-worth individuals opening bank accounts in Georgia for the first time; 2) Executing large transactions, such as real estate purchases, which trigger bank monitoring systems; 3) Depositing significant funds following the sale of a business or asset; 4) Relocating to Georgia and transferring wealth from other jurisdictions; 5) Periodic bank reviews (KYC updates) requiring the submission of refreshed financial documentation.
Georgian Legal Framework
The primary legislative act is the Law of Georgia on Facilitating the Prevention of Money Laundering and Terrorism Financing, which is based on FATF recommendations. Regulations issued by the National Bank of Georgia regarding customer identification and verification are also fundamental. Additionally, the Tax Code of Georgia and international tax treaties play a role in information sharing. The Law of Georgia on Personal Data Protection governs how sensitive client information must be handled during the compliance process.
Step-by-Step Process
The process begins with a pre-compliance check—a preliminary analysis of the client's financial status and available documentation. Next, gaps are identified, and the necessary evidence is gathered. In the third stage, a comprehensive dossier is prepared for submission to the bank's compliance department. A lawyer manages all communication with the bank, addressing any follow-up queries. After successful verification, ongoing monitoring and updates on regulatory changes are provided to the client.
Why Find a Specialist on Legal.ge?
Banking compliance is a field where even a minor error can lead to blocked accounts or reputational damage. Legal.ge features experts with extensive experience in the banking sector. They understand the internal workings of financial institutions and will help you navigate complex procedures with ease. Find your compliance specialist on Legal.ge to ensure your financial freedom and legal peace of mind.
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