Tbilisi (GBC) - The National Bank of Georgia (NBG) has fined a currency exchange office and a microfinance organization a total of 235,100 GEL for violating the legislation on the prevention of money laundering and terrorist financing.

By the regulator's decision, sanctions were imposed on NSN Group LLC and Microfinance Organization MJC LLC.

The largest sanction, in the amount of 153,600 GEL, was imposed on NSN Group LLC. The National Bank's inspection revealed the following main deficiencies:

  • Non-recording of operations: 19 cases of non-recording of information about clients and transactions in the electronic system were identified (fine 133,000 GEL)
  • Software deficiencies: The organization's system failed to ensure the detection of suspicious and fragmented transactions, as well as the identification of sanctioned and politically active persons (PEP)
  • Failure to investigate sources: No investigation of the origin of funds was carried out in relation to two clients

According to the Business Register, the owner and director of the company is Zurab Nikoladze.

The National Bank fined LLC "Microfinance Organization MJC" 81,500 GEL. The list of violations identified during the inspection is as follows:

  • Failure to submit information: 25 cases of failure to submit information about transactions to the Financial Monitoring Service (fine 50,000 GEL)
  • Monitoring deficiencies: The business relationship monitoring rule was violated with respect to three clients and the origin of funds was not studied
  • Violation of the sanctions regime: The organization's software system functioned with significant deficiencies in terms of compliance with the sanctions regimes

According to the Public Registry, the owner and director of the company in question is Makhare Jamrishvili.