Illegal capital movement and circulation (often referred to as illicit financial flows) represent a category of financial crimes involving concealing the illicit origin of funds, illegal transfers abroad, and bypassing financial monitoring systems. In the modern banking and financial system, transactions are under strict control to prevent money laundering and terrorism financing. Allegations in this category can be levied against major financial institutions, private companies, and individuals whose financial operations are deemed suspicious by the Financial Monitoring Service or the Prosecutor's Office. This is a particularly complex legal field where banking regulations, criminal law, and international financial standards intersect.
What Does Illegal Capital Movement Service Cover?
Specialists on Legal.ge offer high-quality legal assistance in the field of financial crimes. The service includes:
- Money Laundering Defense: Full defense during investigation and trial for offenses under Article 194 of the Criminal Code (Legalization of Illicit Income).
- Unfreezing Bank Accounts: Releasing assets frozen by the Financial Monitoring Service or court orders and proving the legitimacy of transactions.
- Compliance and Risk Management: Developing internal policies for companies to avoid "suspicious transaction" status and sanctions from financial monitoring bodies.
- Legalization of International Transfers: Justifying the origin of large funds received from abroad or intended for transfer with banks and regulators.
- Corporate Investigations: Conducting internal audits to detect and prevent financial irregularities.
Common Situations and Scenarios
Problems related to capital movement often arise in the following cases:
- Foreign Investment: A foreign investor transfers a large sum to Georgia to start a business, but the bank blocks the operation and demands documents proving the "clean origin" of funds, leading to delays.
- Transit Operations: A company uses Georgia as a transit hub to transfer money between two foreign entities, which investigative bodies perceive as a money laundering scheme.
- Asset Concealment: A debtor transfers assets to relatives or moves money to an offshore zone to avoid seizure by creditors or court enforcement.
- Crypto Operations: Cashing out large amounts of cryptocurrency and depositing them into the traditional banking system, which banks often flag as high-risk operations.
Georgian Legal Framework
The main regulatory act is the Law of Georgia on Facilitating the Prevention of Money Laundering and the Financing of Terrorism, which imposes strict monitoring on certain types of transactions. From a criminal perspective, Article 194 of the Criminal Code (Legalization of Illicit Income) prescribes one of the most severe penalties, including confiscation of property and long-term imprisonment. Also important are the regulations of the National Bank of Georgia and international standards (FATF recommendations), which Georgian banks strictly follow. Illegal capital movement can also be classified as tax evasion or violation of entrepreneurial rules.
Step-by-Step Service Process
Qualified legal assistance includes:
- Financial Analysis: Studying transaction history and identifying problematic transfers.
- Documentation Preparation: Compiling a package of source of funds documents, contracts, and tax records for the bank or prosecutor.
- Communication with Regulators: Negotiations with the Financial Monitoring Service and the National Bank.
- Legal Defense: Actively defending interests in court proceedings, requesting the lifting of attachments, and achieving acquittal.
Why Choose a Specialist on Legal.ge?
Financial crimes require specific knowledge that goes beyond general criminal law. On Legal.ge, you will find lawyers with economic backgrounds or extensive experience in White-Collar Crime. This is critical, as inadequate defense can lead not only to financial loss but also to reputational damage and criminal prosecution.
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