The Fintech sector in Georgia is one of the fastest-growing yet most strictly regulated industries. The National Bank of Georgia (NBG) has significantly tightened regulations in recent years, especially for Virtual Asset Service Providers (VASPs) and Payment Service Providers (PSPs). Fintech companies must meet stringent Anti-Money Laundering (AML/CFT) standards, Know Your Customer (KYC) rules, and capital adequacy requirements. Failure to comply leads to severe fines and revocation of registration. The Fintech Regulatory Compliance service involves full legal preparation for obtaining a license/registration and ensuring subsequent operations fully comply with NBG requirements.
What does this service cover?
Fintech compliance services are comprehensive:
- Licensing and Registration: Registering as a VASP (Virtual Asset Service Provider), obtaining a Payment Service Provider (PSP) or Microfinance Organization license from the National Bank.
- AML/CFT Policy Development: Creating internal guidelines for preventing money laundering and terrorism financing that fully comply with the law and Financial Monitoring Service requirements.
- KYC (Know Your Customer) Procedures: Legally structuring remote and face-to-face customer identification processes.
- Internal Audit and Monitoring: Periodic checks of the compliance system and reporting to the regulator.
- Contracts and Risks: Legal support for customer agreements, relationships with partner banks, and technology outsourcing.
Common Real-World Scenarios
Legal help is critical in Fintech for:
- Opening a Crypto Exchange: A company wants to offer crypto exchange services. It needs VASP registration, requiring "fit and proper" checks for administrators and a complex AML program.
- E-Wallet: A startup creates a payment app. This is a payment service requiring an NBG license and meeting capital requirements.
- Foreign Investment: A foreign investor enters the Georgian fintech market. Proof of funds origin and beneficiary transparency for the regulator are required.
- NBG Inspection: The National Bank conducts a scheduled inspection. The lawyer prepares the company and attends the process to minimize fines.
Georgian Legal Framework
The main regulator is the National Bank of Georgia (NBG). Key laws include the Organic Law on the National Bank of Georgia, the Law on Payment Systems and Payment Services, and the Law on Facilitating the Prevention of Money Laundering and Terrorism Financing. NBG President's orders regarding VASP registration and regulation also apply. These regulations constantly evolve to align with international standards (FATF).
Process: How does a specialist work?
The lawyer first assesses the business model and determines the regulatory type. Then, a full registration package is prepared (policies, business plan, founders' documents). After registration, the lawyer assists the company in daily operations: reporting suspicious transactions, updating policies, and communicating with the regulator.
Why Legal.ge?
Financial regulations are a highly complex field where a mistake can cost you your business. On Legal.ge, you will find lawyers with real experience working with the National Bank and obtaining licenses. We will help you navigate the complex bureaucratic maze and build a legal, trusted fintech business.
Updated: ...