Moneyval approved Fifth Round Mutual Evaluation Report of Georgia
Moneyval report underlines efficacy of supervisory approaches demonstrated by the National Bank of Georgia (NBG) in achieving outcomes that are fundamental for proper AML/CFT system in the financial sector. The report also underlines that after the last Moneyval visit (2011), the compliance level of the financial institutions has been improved:
§ Since 2015, the NBG´s approach to AML/CFT supervision has developed significantly and is currently fully risk-based. The NBG has comprehensive understanding of sectoral and individual institution risks;
§ The NBG has established an effective supervisory cycle and conducts a proportionate number of inspections given the size and materiality of the sectors under its supervision. The NBG effectively applies its supervisory powers;
§ AML/CFT Supervision Department is examined to be well resourced and its staff knowledgeable and engaged;
§ The NBG effectively applies robust "fit and proper" entry checks for the financial institutions under its supervision including broad consideration of reputation of the applicant;
§ The NBG has proven impact on the compliance of entities under its supervision. Due to the NBG efforts, banks and core non-bank financial institutions give high priority to AML/CFT compliance functions, have sophisticated AML/CFT internal controls, which involve properly structured compliance function, training programs and internal audits;
§ Financial institutions have generally good knowledge and understanding of AML/CFT risks. Large banking and other financial groups have put in place effective internal systems and controls to mitigate ML/TF risks and have implemented sophisticated automated systems for sanctions screening and monitoring of transactions of their customers;
§ The representatives of the commercial banks have demonstrated a good understanding of the risks related to correspondent relationship, politically exposed persons and high-risk jurisdictions and knowledge to mitigate these risks through enhanced AML/CFT measures.
As for the technical compliance component, remarkable improvement is evident as well; the NBG has established effective legal and supervisory framework compliant with the FATF recommendations.
Compliance of financial institutions' internal systems with the FATF recommendations is one of the NBG's top priorities. The NBG will further continue intensive work for fulfilment of the recommendations defined in Moneyval report and for improvement of AML/CFT compliance level in the financial sector.