Transaction Monitoring is the heart of the AML/CFT compliance system for financial institutions in Georgia. This process involves continuous and systematic oversight of operations carried out by clients to detect in a timely manner actions that may be related to money laundering, terrorism financing, or other financial crimes. Requirements from the National Bank of Georgia and the Financial Monitoring Service are becoming stricter by the day, forcing banks and other financial organizations to implement advanced technological solutions and risk-based approaches. Effective monitoring does not mean just checking every single operation; it involves intelligent analysis that distinguishes a client's normal business activity from suspicious anomalies. The Legal.ge platform offers qualified specialists who will help you create and optimize a robust monitoring system.
What does the Transaction Monitoring service cover?
Legal and consulting services in the field of transaction monitoring include complex support for financial organizations. The service includes: developing rules and scenarios for automated monitoring systems considering the client's risk profile; establishing transaction limits and thresholds; creating a methodology for historical analysis of client behavior; setting up screening processes for sanctioned individuals and PEPs; and describing procedures for investigating and documenting generated "alerts." Specialists will also help with "back-testing" the effectiveness of the existing system to ensure it actually identifies risks rather than just generating useless data that increases operational costs.
Common real-world scenarios
During the monitoring process, specific cases often emerge that require in-depth analysis. For example, when large volumes of incoming transactions are suddenly recorded on a client's account from countries considered offshore zones or high-risk jurisdictions. A second scenario is the sudden activation of "dormant" accounts with intense turnovers, often indicating account "renting" or use by third parties. Monitoring fiat transactions related to cryptocurrency is also important, as determining the source of funds can be difficult. Another scenario is the "fragmentation" of transactions across different banks and financial providers to hide a single unified picture. A professional consultant will help you recognize such complex schemes and develop an appropriate response plan.
Georgian Legal Framework
The obligation for transaction monitoring stems directly from the Law of Georgia on Facilitating the Prevention of Money Laundering and Terrorism Financing. This law requires obliged entities to perform continuous monitoring and check the compliance of the client's activity with information available about them. Furthermore, Orders of the President of the National Bank of Georgia set detailed rules for monitoring by commercial banks and currency exchange points. Guiding instructions from the Financial Monitoring Service, containing suspicion indicators for various sectors, are also important. Georgian legislation requires that the monitoring system be dynamic and constantly subject to updates considering new typologies and risks.
Step-by-step process when working with a specialist
Collaboration begins with an assessment of the client's business model and risk appetite. In the first stage, a lawyer or consultant performs an audit of existing monitoring software and internal processes. In the second stage, monitoring rules are optimized and new scenarios are added. The third stage involves creating an "incident management" framework defining how suspicious transactions should be identified, suspended, and further investigated. The fourth stage includes training staff so they can correctly interpret signals generated by the system. The process ends with setting up a regular reporting system, giving management a full picture of AML risks within the organization.
Why choose Legal.ge?
Transaction monitoring requires not only legal knowledge but also an understanding of data analysis and banking technologies. On the Legal.ge platform, you will find specialists with unique experience in implementing and managing monitoring systems in the Georgian banking and financial sector. Our experts will help you avoid heavy sanctions imposed by the regulator and ensure your business's sustainability. Find a reliable partner on Legal.ge and update your monitoring system in accordance with modern standards. Our specialists offer an individual approach considering your business specifics.
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