Compliance Monitoring is a continuous oversight process aimed at ensuring that an organization's activities fully align with current legislation, regulatory requirements, and internal corporate policies. In Georgia, the legal landscape changes dynamically—new regulations are constantly introduced regarding labor safety, personal data protection, taxation, and anti-money laundering (AML). It is challenging for a company to independently track all changes and react immediately. Compliance monitoring is not a one-time audit; it is a systematic process that reduces the risks of fines, license revocation, and reputational damage. This service is particularly important for regulated industries (banks, insurance companies, medical institutions, energy), but it is also critical for medium and large businesses to maintain operational stability.
What does this service cover?
The compliance monitoring service is comprehensive and covers all critical business areas:
- Regulatory Tracking: Constant analysis of new laws and bylaws, informing management about how these changes affect the company.
- Internal Process Audit: Periodic checks of existing procedures (procurement, HR, finance) for compliance with the law.
- Reporting Obligation Control: Monitoring deadlines for submitting reports to state agencies (Revenue Service, Geostat, GNERC, etc.).
- Risk Map Updates: Identifying operational and legal risks and adjusting the management plan in real-time.
- Employee Conduct Monitoring: Overseeing adherence to the code of ethics and anti-corruption policies within the organization.
Common Real-World Scenarios
Monitoring needs arise in the following scenarios:
- Labor Inspection Requirements: Labor safety standards have changed. The monitoring team checks if the company has implemented new protocols to avoid penalties.
- Personal Data: Following the enactment of a new law, a company must change data processing rules. Monitoring reveals whether marketing staff are following new regulations when communicating with clients.
- Sanctions Regime: The company works with international partners. Continuous checks are needed to ensure no counterparty has been added to international sanctions lists.
- Licensing Conditions: An energy company must adhere to environmental parameters. Monitoring ensures emissions do not exceed the limit set by the license.
Georgian Legal Framework
Compliance monitoring relies on multiple legal acts depending on the industry. The Labor Code of Georgia, the Law on Entrepreneurs, and the Tax Code are universal. For the financial sector, the Law on Facilitating the Prevention of Money Laundering and Terrorism Financing and National Bank regulations are crucial. Regarding data protection, the Law on Personal Data Protection applies. A compliance specialist must know not only the laws but also the practices of regulatory bodies (SARAS, Competition Agency, Labor Inspection).
Process: How does a specialist work?
The lawyer first studies the company's field of activity and establishes a "Mandatory Compliance Register" (all laws affecting the company). Then, a monitoring plan is created: how often each department is checked. The lawyer uses checklists and audit methods. A report is drawn up on detected violations, indicating the risk level and recommendations for correction. This report is submitted to the Board of Directors.
Why Legal.ge?
Compliance monitoring requires a systematic approach and deep legal expertise. On Legal.ge, you will find compliance specialists with experience in various industries. We offer not just problem identification but preventive mechanisms to keep your business always in the "green zone" regarding legislators and regulators. Insure yourself against unexpected fines with Legal.ge.
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