The National Bank of Georgia has imposed a fine of 53,800 GEL on payment service provider NBC LLC. The penalty, outlined in an order published on December 9, was issued for multiple violations related to anti-money laundering (AML) and combating the financing of terrorism (CFT) regulations.
According to the National Bank, the violations include:
Failure to Comply with Financial Monitoring Rules: Six cases of improperly recording, storing, and submitting required information to the Financial Monitoring Service of Georgia.
Improper Risk Assessment: Assigning risk levels to 16 clients without properly considering the relevant risk factors outlined in the guidelines for assessing the risks of money laundering and terrorism financing.
Submission of Incorrect Data: In four instances, NBC LLC provided inaccurate information to the National Bank in its AML/CFT Risk Supervision Reports, in violation of the procedures established under the relevant presidential order.
NBC LLC, established in 2016, is fully owned by David Kitiashvili.
The Government of Georgia approved the AML/CFT Supervision Rule on June 27, 2018. This rule mandates that financial service providers comply with strict guidelines for identifying and mitigating risks related to the legalization of illicit income and financing of terrorism. Institutions are required to submit accurate reports to the National Bank through a portal specifically designed for monitoring AML/CFT compliance.
This penalty underscores the National Bank's commitment to maintaining a robust framework for combating money laundering and terrorism financing, ensuring compliance across the financial sector.
