Tbilisi (GBC) - The National Bank of Georgia (NBG) has imposed a total fine of GEL 200,000 on Kotorashvili’s Pawn Shop, whose ownership is divided between Kaha Kotorashvili (90%) and Vakhtang Kotorashvili (10%), for multiple violations of anti-money laundering (AML) and counter-terrorism financing (CFT) regulations. 

The penalties stem from deficiencies in client monitoring, reporting, and internal controls.

Among the fines, GEL 133,000 was issued for 19 instances of failing to record client transactions, GEL 17,000 for providing incorrect information to the NBG and the Financial Monitoring Service regarding AML/CFT risk oversight, GEL 15,000 for a software system that could not block or detect suspicious individuals, GEL 8,000 for serving four clients without properly establishing their business profiles, GEL 5,000 for late submission of primary accounting forms, GEL 5,000 for lacking internal control policies, and GEL 4,000 for incomplete documentation.

The National Bank noted that the Lombard failed to detect suspicious, unusual, or split transactions, did not verify clients against sanctions or politically exposed persons lists, and operated a software system unable to fully record client information in accordance with KYC standards, highlighting systemic gaps in AML/CFT compliance.