A total of 35,000 (thirty five thousand) GEL was fined to the Currency Exchange Office I.E. “GENADI KARTVELISHVILI” (IDENTIFICATION NUMBER: 01002010737)

According to Article 4 of the Order No. 1 of the Head of the Financial Monitoring Service of Georgia dated January 18, 2012 “On Approval of the Rule on the Procedure for Receiving, Systematizing, Processing and Transmitting Information by Currency Exchange Offices to the Financial Monitoring Service of Georgia”, as well as Article 7, Paragraph 13 of the “Rule on Registration and Regulation of Currency Exchange Offices” approved by Order No. 37/04 of the President of the National Bank of Georgia dated February 28, 2018, a currency exchange office must submit a completed registration form to the LEPL Financial Monitoring Service of Georgia no later than 10 working days after registration, in accordance with the procedure established by the Financial Monitoring Service of Georgia. Registration as a currency exchange office with the National Bank of Georgia was carried out on January 25, 2019. Despite the above obligation, the currency exchange office submitted the initial registration form to the Financial Monitoring Service late, on February 11, 2019, which, in accordance with Article 5, Subparagraph “c” of the “Rule for Determining, Imposing and Enforcing the Amount of Monetary Fines for Microfinance Organizations and Currency Exchange Offices” approved by Order No. 25/04 of the President of the National Bank of Georgia dated February 7, 2012, it envisages a fine of 2,000 (two thousand) GEL;

By the date of commencement of the inspection specified in the legal act of the National Bank of Georgia on the inspection of the currency exchange office, have been revealed 10 (ten) facts of incorrect submission of information held by the currency exchange office to the Financial Monitoring Service provided for in Article 6, Paragraph 4 of the “Rule for Recording, Storing and Submitting Information on Transactions by an Obliged Entity 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, which in accordance with Article 3, Paragraph 3, Subparagraph “l” of the “Rules for Determining, Imposing and Enforcing the Amount of Monetary Fines against Currency Exchange Offices and their Administrators” approved by Order No. 17/04 of the President of the National Bank of Georgia dated February 5, 2020 (hereinafter “Penalty Rule”), it envisages a fine of 2,000 (two thousand) GEL for each violation, in total 20,000 (twenty thousand) GEL;

In accordance with Article 10, Paragraph 4 of the Law of Georgia "On Facilitating the Prevention of Money Laundering and the Financing of Terrorism", have been revealed 1 (one) case of failure to determine the essence of the client's activities, which, in accordance with Article 3, Paragraph 3, Subparagraph "t" of the Penalty Rule, it envisages a fine of 2,000 (two thousand) GEL in relation to each client, in total 2,000 (two thousand) GEL;

The currency exchange office did not conduct a due diligence investigation of the origin of property (cash) in relation to 2 (two) clients according to the legislation, which, in accordance with Article 3, Paragraph 3, Subparagraph "g" of the Penalty Rule, it envisages a fine of 3,000 (three thousand) GEL in relation to each client, in total 6,000 (six thousand) GEL;

In the case of 10 (ten) operations (transactions) has been revealed the facts of failure to record the relevant information/documentation for the verification of the person acting on behalf of the client, which, in accordance with Article 3, Paragraph 4, Subparagraph "b" of the Penalty Rule, it envisages a fine of 500 (five hundred) GEL for each fact of violation, in total 5,000 (five thousand) GEL.