Inspection of Money Laundering - In 2018 NBG fined banks with 0.6 million GEL
According to the supervisory document against money laundering and terrorism financing, the National Bank of Georgia examined 6 commercial banks last year. Imposed penalty sanctions totaled 596 000 GEL.
The National Bank's annual report says that the last year also carried out inspection of 38 currency exchange bureaus and 2 microfinance organizations. Total amount of imposed penalty totaled 748 300 GEL and the registration of one currency exchange point was canceled.
4 brokerage companies and 4 registrars were also checked during the year, where the total amount of imposed penalty totaled 107 500 GEL.
The NB clarifies that on-site inspection was focused on the study of the following topics: the risk train customer classification process and the risk appropriate due diligence measures; Process of determining the beneficiary owner of companies with a complicated ownership structure; Effectiveness of the implementation of measures envisaged by the legislation with respect to politically active persons;
information about the financial institution related with deals, on transactions, including the effectiveness of risk management processes for money transfers; Adequacy of control mechanisms related to correspondent relationships; Software adequacy, efficiency of learning process, etc.
In addition, the National Bank of Georgia fined ten microfinance organizations and three commercial banks for violations revealed by the legislative framework for protection of consumer rights, totaling several hundred thousand GEL.