MONEYVAL report on Georgia: Improvements in financial surveillance service’s powers to share information with law enforcement, but other shortcomings remain

Georgia has improved its anti-money laundering and anti-terrorist financing measures; It has shown good progress and has been upgraded from “partially compliant” to “broadly compliant” with FATF (Financial Action Task Force) Recommendation 29 on Financial Intelligence Units, concludes the Council of Europe’s Anti-Money Laundering Panel MONEYVAL in a Follow -up report released today.

Georgia has addressed a previously identified significant shortcoming by strengthening the powers of the Financial Intelligence Unit of Georgia to share information and analytical results with any law enforcement agency upon request and without a court order. There are only minor shortcomings regarding the lack of an explicit reference to requiring the financial surveillance service to carry out operational and strategic analysis and the scope of the money laundering definition.

The report also examines a range of legislative, regulatory and institutional measures such as the introduction of centralized electronic reporting for online casinos, the requirement of clean criminal records for beneficial owners of casinos, the imposition of sanctions for AML/CFT (Anti-Money Laundering and counting). terrorism financing) violations against casinos and the introduction of a broad regulatory framework for the mutual fund sector. However, these measures were not sufficient to raise the ratings of Recommendations 22, 28 or 35, as modest shortcomings remain in terms of the scope of the covered designated non-financial entities and professions and the sanction regimes.

Overall, Georgia has achieved full compliance with six of the 40 FATF Recommendations that make up the international AML/CFT standard and continues to show minor shortcomings in the implementation of 22 Recommendations that were found to be “broadly compliant”. . Eleven Recommendations remain “partially compliant” and one of them has a rating of “non-compliant” (the recommendation that requires countries to review their laws and regulations to ensure nonprofit organizations cannot be misused to finance terrorism).

Consequently, Georgia is expected to report to MONEYVAL within a year on further progress towards increased implementation of AML/CFT measures.

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