Money Laundering and Terrorism Financing Risk Assessment of Banking and financial sector of Georgia

The banking sector dominates the economy of Georgia. The assets of commercial banks are voluminous, and the services offered to their clients are diverse. Herewith, the bank accounts are the main source of money laundering in Georgia. Within the certain period, the commercial banks had a certain deficiencies in client risk assessment and risk management processes. Thus, the process of verification of beneficiary owner was also considered as weakness, especially in relation to non-resident clients.  Though systematic thematic onsite inspections, the growth of sanctions, intensive communication, new guidelines on risk identification and identification/verification of beneficiary owner facilitated the growth of compliance level of banking sector in terms of combating money laundering and terrorism financing. At this point of time the compliance level of banking sector with legislation of anti money laundering and anti terrorism financing is high.