The Essence of the Reporting Duty
Reporting suspicious operations is the central instrument of the Georgian law on the prevention of money laundering and terrorism financing, and the foundation of this page consists of Articles 25, 26 and 28. Article 25 obliges the accountable person to submit to the service a report on a suspicious transaction or on an attempt to prepare, conclude or perform such a transaction. Reporting is thus not confined to concluded transactions — an abandoned attempt or one stopped before performance is also reportable if it appears suspicious.
In addition, a subordinate normative act of the head of the service may define types of transactions on which reports must be submitted — on the basis of information disseminated by international organisations or held by the service that points to the probability of their use for money laundering or terrorism financing. Upon the service's request, the accountable person submits any information obtained in accordance with the law's requirements about a transaction or its participant, including confidential information the service needs to perform its functions.
Special Reporters: the Public Registry and the Revenue Service
The law sets separate rules for the National Agency of the Public Registry. A report on a suspicious or unusual transaction identified according to defined criteria must be submitted when ownership of immovable property is registered or such registration is requested — and immediately upon detection of the suspicious transaction, before registration of the right involved. If the service does not exercise the power provided by law within 24 hours of receiving the report, the Agency continues the registration proceedings. Where a suspicious or unusual transaction is detected after registration, the report is submitted on the day of detection. The service provides feedback on such reports no more than once a year.
The Revenue Service, in turn, must submit a report on the movement across the customs border of Georgia of cash or securities exceeding 30 000 lari or the equivalent in foreign currency, as well as on movement bypassing customs control, concealed from it, or falsely declared. An advocate submits a report where this does not contradict the duty to protect professional secrecy under the law on advocates.
Procedure and Deadlines for Submission
Article 26 provides that the report and other information are submitted to the service electronically or in writing, in the manner established by a subordinate normative act of the head of the service. A report on a suspicious transaction must be submitted on the very day a well-founded suspicion arises — this is a same-day deadline, and its breach is an independent risk. A report on the movement of cash or securities across the customs border is submitted no later than 5 working days from the movement, and information requested by the service — no later than 2 working days from the request.
The law gives advocates an alternative as well: an advocate may submit the report within the established deadlines to the supervisory body instead of the service, and in that case the supervisory body forwards it unchanged to the service no later than the next working day. Managing deadlines properly — at the level of the calendar, the responsible person and internal control checkpoints — matters as much as the content of the report itself.
Confidentiality and the Protection of Staff
Article 28 prohibits the accountable person, its managers and employees from notifying the client or another person that measures will be or are being taken to detect a suspicious transaction or study an unusual transaction, that a report is being or has been submitted to the service, or that measures prescribed by the service are being carried out. The prohibition has exceptions — for instance, submission to a competent body in the manner established by legislation, dissemination of information among members of a single group where a group-level compliance control system is implemented, or persuading the client not to commit an unlawful act.
The law also protects those who perform the duty in good faith: no liability may be imposed on the accountable person, its managers or employees for breach of a confidentiality duty where the reporting obligation has been performed in good faith. Disclosure of the identity of the employee who carries out the measures or submits the report is likewise prohibited, and the accountable person must protect that employee from threats, discriminatory treatment or other unlawful influence.
Frequently Asked Questions
When must a report on a suspicious transaction be submitted?
On the very day a well-founded suspicion arises, electronically or in writing, in the established manner. Both the transaction and an attempt to prepare or perform it are reportable.
What deadline applies to movement across the customs border?
The Revenue Service reports movement of cash or securities exceeding 30 000 lari or the equivalent, no later than 5 working days from the movement.
May the client be told about a report?
No — the law prohibits informing the client or another person about the measures, the report or actions prescribed by the service; disclosing the identity of the reporting employee is also impermissible.
How does an advocate submit the report?
Where this does not contradict the protection of professional secrecy — directly to the service or through the supervisory body, which forwards it unchanged.
What happens after the registry's report?
If the service does not exercise its power within 24 hours of receiving the report, the National Agency of the Public Registry continues the registration proceedings in the manner established by law.
How We Help on Legal.ge
On Legal.ge we help accountable persons build reporting processes: we assess the signs of suspicious transactions, structure internal rules with deadlines, and prepare confidentiality and staff-protection mechanisms. Contact us — we will evaluate your system and prepare a remediation plan.