Monetary fine imposed on the microfinance organization, JSC "Miso Intelexpress" (Identification Number: 202353176)

1. "During an inspection period by the National Bank of Georgia, a microfinance organization incorrectly submitted information/documentation on 4 (four) occasion. According to the rule approved by the Order No. 16/04 of the President of the National Bank of Georgia dated February 5, 2020, titled 'On the Approval of the Rule for Determining, Imposing, and Enforcing Fines on Microfinance Organizations and Their Administrators' (hereinafter referred to as the 'Fine Rule'), Article 3, Paragraph 3, Subparagraph 'P', the microfinance organization is subject to a fine of 2,000 (two thousand) GEL for each violation. For the mentioned violation, for one instance, the total fine is 8,000 (eight thousand) GEL."
2. As a result of the inspection, a violation of the requirements stipulated in Article 6, Paragraph 1, Subparagraph 'a' of the "Rules for accounting, storage and submission of information on transactions by an accountable person to the Financial Monitoring Service of Georgia" approved by Order №1 of the Head of the Financial Monitoring Service of Georgia on June 5, 2020, In particular, for the Financial Monitoring Service of Georgia, 1 (one) cases of late submission of reports without meeting the established deadline (for a delay of up to five working days), which is provided for in accordance with the fine rule - Article 3, Clause 4, Sub-Clause "A", Sub-Clause "AA" to be fined - in the amount of 100 (one hundred) GEL for each violation. A total of 100 (one hundred) GEL for 1 (one) violation case mentioned in this paragraph.
3. There were 18 (eighteen) instances of failing to submit information on operations/transactions subject to monitoring to the Financial Monitoring Service of Georgia, in accordance with Subparagraph 'a' of Paragraph 1, Article 6 of the 'Rule on Recording, Retaining, and Submitting Information on Transactions by Accountable Persons to the Financial Monitoring Service of Georgia,' approved by Order No. 1 of the Head of the Financial Monitoring Service of Georgia dated June 5, 2020. According to Article 3, Paragraph 3, Subparagraph 'M' of the Fine Rule, each of these violations entails a fine of 2,000 (two thousand) GEL. For the 18 (eighteen) instances mentioned in this paragraph, the total fine is 36,000 (thirty-six thousand) GEL.
4. There were 3 (three) instances of submitting inaccurate information to the National Bank of Georgia in reports as stipulated by the rule approved by Order No. 61/04 of the President of the National Bank of Georgia dated May 31, 2016, titled "On the Approval of the Rule for Filling Out Supervision Reports on the Risk of Money Laundering and Terrorism Financing by Microfinance Organizations and Submitting Information", and one (1) instance of submitting incorrect information to the National Bank of Georgia in the reporting process stipulated by the rule approved by Order No. 62/04 of 15 March 2024, titled "On the Approval of the Rule for Completing AML/CFT Risk-Based Supervision Reports and Submitting Information by Microfinance Organizations," which, in accordance with Article 3, Paragraph 4, Subparagraph 'd' of the Fine Rule, entails a fine of 1,000 (one thousand) GEL for each individual violation by the microfinance organization.
5. In relation to 5 (five) client has been violated Subparagraph "e" of Paragraph 1, Article 18 of the Law of Georgia on "Facilitation of Prevention of Money Laundering and Financing of Terrorism" In particular, the microfinance organization did not find out the origin of the transaction and/or property (funds) in accordance with the legislation, which under the Article 3, Paragraph 3, sub-paragraph “z” of the “Rule for determining, imposing and enforcing of the fine to the microfinance organizations and their administrators” considers fining the microfinance organization with the amount of 3,000 (three thousand) GEL on each client. In total, for 5 (five) case of violation mentioned in this paragraph - 15,000 (fifteen thousand) GEL.
6. In relation to 9 (nine) client has been violated Paragraph 4, Article 10 of the Law of Georgia on "Facilitation of Prevention of Money Laundering and Financing of Terrorism", in particular, the microfinance organization has not determined the nature of the activity and/or the purpose and intended nature of the business relationship for a 9 (nine) client, which according to the article 3, paragraph 3, subparagraph “t” of the “Rule for determining, imposing and enforcing of the fine to the microfinance organizations and their administrators” considers fining the microfinance organization with the amount of 2,000 (two thousand) GEL on each client. In total, for 9 (nine) case of violation mentioned in this paragraph - 18,000 (eighteen thousand) GEL.
7. Three (3) instances of submission of incorrect information to the National Bank of Georgia by the microfinance organization through the reporting form provided for by the rule approved by Order No. 61/04 of 31 May 2016 of the President of the National Bank of Georgia, "On the Approval of the Rule for Filling Out Supervision Reports on the Risk of Money Laundering and Terrorism Financing by Microfinance Organizations and Submitting Information", and one (1) instance of submission of incorrect information through the reporting form provided for by the rule approved by Order No. 62/04 of 15 March 2024, "On the Approval of the Rule for Filling Out Supervision Reports on the Risk of Money Laundering and Terrorism Financing by Microfinance Organizations and Submitting Information", constitute violations which, in accordance with subparagraph "d" of paragraph 4 of Article 3 of the Rule on Imposition of Fines, entail the imposition of a fine on the microfinance organization in the amount of 1,000 (one thousand) GEL per each instance of violation. Accordingly, for the four (4) violations described above, the total amount of the fine is 4,000 (four thousand) GEL.

As a result, JSC "Miso Intelexpress" was fined a total of 121,000 (One hundred and twenty-one thousand one hundred) GEL