Anti-Money Laundering (AML) Compliance is a critically important legal service for companies operating in the fintech, cryptocurrency, and banking sectors in Georgia. With the tightening of Georgian legislation and alignment with European standards, regulations regarding Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) have become highly complex. This is especially relevant for Virtual Asset Service Providers (VASPs), which have come under the supervision of the National Bank of Georgia. AML compliance is not merely a bureaucratic obligation; it is a matter of business survival, as violations lead to colossal financial fines, denial of licenses, and criminal liability. Consequently, the involvement of a qualified AML specialist is essential for the proper functioning of the system.
AML Compliance services encompass a comprehensive approach to ensure a company fully meets regulatory requirements. Key components of the service include:
- Development of Internal Policies and Procedures: Creating detailed instructions tailored to legislation, defining rules for client identification, risk assessment, and monitoring.
- Selection and Implementation of AML Software: Integrating technological solutions for automated transaction monitoring and screening against sanctions lists.
- Enterprise-Wide Risk Assessment: Identifying money laundering risks associated with the company's activities and establishing a management strategy.
- Reporting to the Financial Monitoring Service (FMS): Setting up a reporting system for Suspicious Transaction Reports (STR) and Cash Transaction Reports (CTR) above thresholds.
- Employee Training: Training staff to recognize suspicious behavior and respond correctly.
- Compliance Audit: Periodic checks of the existing system to detect gaps.
In real life, a lack of AML compliance leads to severe consequences. For example, a crypto exchange starts operating without a proper AML program. Within months, hackers use it to launder stolen funds. An inspection by the National Bank reveals the exchange lacked a transaction monitoring system. The result: massive fines and revocation of registration. Another scenario: A fintech company serves funds transferred from a "high-risk" jurisdiction (e.g., an offshore zone) without investigating the source of funds. This leads to the freezing of bank accounts and termination of services by partner banks. A third case: A company fails to send mandatory reports to the FMS due to technical faults, automatically triggering sanctions.
In Georgia, this field is regulated by the Law of Georgia on Facilitating the Prevention of Money Laundering and Terrorism Financing. This law defines the circle of accountable persons (banks, VASPs, notaries, casinos, etc.). Additionally, Orders of the President of the National Bank of Georgia apply to Virtual Asset Service Providers, detailing registration and operation rules. Internationally, Georgia adheres to FATF (Financial Action Task Force) recommendations and MONEYVAL assessments.
The AML compliance process begins with a "Gap Analysis"—comparing the current state with legal requirements. Then, an AML Officer (MLRO) is appointed to manage the entire process. Lawyers prepare documentation, while the technical team implements screening tools (e.g., Chainalysis, Sumsub). This process is continuous and requires constant updates.
Legal.ge gives you access to certified AML specialists and lawyers with experience in both traditional banking and the innovative crypto sector. We will help you build a secure business that meets the regulator's strictest requirements. Avoid risks and trust professionals on Legal.ge.
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