The Composition of Money Laundering
Criminal legislation establishes liability in a separate norm for the legalisation of unlawful income, known as money laundering. It is the giving of a lawful appearance to unlawful or unsubstantiated property — the use, acquisition, possession, conversion, transfer of the property or another act — for the purpose of concealing its unlawful or unsubstantiated origin and/or assisting another person in evading responsibility, as well as the hiding or disguising of its true nature, source of origin, location, placement, movement, ownership or other rights connected with it. The crime thus lies not in receiving the funds but in covering them — in concealing the source — and the defence builds its position precisely on this distinction, examining whether the elements of concealment are proven in the concrete case.
Punishment for the Basic Composition
Under the law, the basic composition is punishable by a fine or imprisonment for a term of three to six years. The same act is punished more severely when committed by a group, committed more than once, or accompanied by the receipt of income in a large amount — in such cases imprisonment for a term of six to nine years applies. Where the act is committed by an organised group, through abuse of an official position, accompanied by the receipt of income in an especially large amount, or committed for the purpose of conducting activity on a political issue connected with Georgia, the punishment is imprisonment for a term of nine to twelve years. Each of these signs must be separately established, and the severity of the qualification depends on this — the defence therefore examines the evidentiary basis of every aggravating feature invoked by the accusation.
The Thresholds of Large and Especially Large Amounts
The law defines the quantitative classification precisely: for the purposes of this norm a large amount is income from thirty thousand to fifty thousand lari, while an especially large amount is income above fifty thousand lari. These thresholds directly change the qualification of the case: one and the same act falls into different punishment frames depending on the amount, and the calculation of sums standing near the threshold is one of the most contested points of such cases. For the defence the verification of the method of calculating the income is decisive: what was counted as a single income, how the transactions were grouped and to which period they are tied — the answers to these questions often change the category of the amount and with it the applicable sanction.
Unlawful and Unsubstantiated Property
Decisive for the application of the norm are the categories of property: unlawful property is property, as well as income derived from it and shares, which a person, a family member, a close relative or an associated person has obtained in violation of the requirements of the law. Unsubstantiated property is property, as well as income derived from it and shares, for which the person, a family member, a close relative or an associated person does not possess documents confirming lawful acquisition through lawful means, or which was acquired with monetary funds received from the alienation of unlawful property. The institute of unsubstantiation is particularly sensitive: the absence of a document does not in itself mean unlawfulness, and the defence's task is to show the legitimacy of the origin through the material that exists — contracts, accounting records, banking documents and explanations.
Liability of Legal Entities and Directions of Defence
The law separately defines the liability of legal entities: for this act a legal entity is punishable by liquidation or by deprivation of the right to carry out activity and a fine. In defence practice the emphasis lies in several directions: the lawfulness of the investigative measures, the admissibility of the evidence, the existence of intent, the tracing of the origin of the property and the correctness of the calculation of the amount. The notion of activity on a political issue connected with Georgia is also separately described, being one of the grounds of the strictest qualification. Each of these aspects requires experience in financial documents and record-keeping, and the early involvement of a lawyer in this type of case shapes the position from the outset, before procedural opportunities are lost.
Frequently Asked Questions About Money Laundering Cases
What counts as a large and especially large amount?
A large amount is income from thirty thousand to fifty thousand lari, and an especially large amount is income above fifty thousand lari. These thresholds directly determine the qualification.
What punishment does the basic composition carry?
A fine or imprisonment for a term of three to six years; in the presence of aggravating signs the frame grows, and the maximum is imprisonment for a term of nine to twelve years.
Must the source of the property be documented?
The category of unsubstantiated property rests precisely on the absence of documents, so showing the legitimacy of the origin and the correct presentation of the existing material are decisive for the defence.
Does a company bear responsibility?
Yes, a legal entity for this act is punishable by liquidation or deprivation of the right to carry out activity and a fine, which is why a system of financial control is critical for companies.
How We Help on Legal.ge
The lawyers of Legal.ge work money laundering cases systematically: we analyse the evidentiary basis of the accusation, verify the calculation of the amounts and the origin of the property, prepare challenges and defend the accused at every instance. Contact us — the earlier we enter the case, the more opportunities remain for building an effective position.