1 (One) fact of non-fulfillment of the Article 18 paragraph 2 sub-paragraph “b” and Article 18 paragraph 1 sub-paragraph “d” of the Law of Georgia “On Facilitating the Prevention of Money Laundering and the Financing of Terrorism” and Article 4 paragraph 2 sub-paragraph “d” of the Manual Approved by the Decree №4/04 of the President of the National Bank of Georgia on January 12, 2021 “On Implementation of Preventive Measures”. In particular, the brokerage company did not obtain permission from the management of the financial institution to establish and/or to continue business relationship with 1 (one) client, citizen of a high-risk jurisdiction. Which under the Article 5¹, Paragraph 3, sub-paragraph “d” of the Rule Approved by the Decree N35/04 (a version after amendment made on April 05, 2021) of the President of the National Bank of Georgia on February 14, 2012 “ On Determining, Imposing and Enforcing the Amount of Fines for Violations of the Securities’ Legislation, the Law of Georgia "On Accounting, Reporting and Auditing" and the law of Georgia “On Facilitating the Prevention of Money Laundering and the Financing of Terrorism” against Entities and Members of their Governing Body” envisages a fine of 2 000 (Two Thousand) GEL for each fact of violation. Total – 2 000 (Two Thousand) GEL.

 

1 (One) fact of non-fulfillment of the Article 18 paragraph 1 sub-paragraph “a” and Article 4 paragraph 2 sub-paragraph “a” of the Manual Approved by the Decree №4/04 of the President of the National Bank of Georgia on January 12, 2021 “On Implementation of Preventive Measures”. In particular, in relation to 1 (one) high-risk client, the brokerage company did not study the client's business, source of wealth and source of funds. Which under the Article 5¹, Paragraph 3, sub-paragraph “g” of the Rule Approved by the Decree N35/04 (a version after amendment made on April 05, 2021) of the President of the National Bank of Georgia on February 14, 2012 “ On Determining, Imposing and Enforcing the Amount of Fines for Violations of the Securities’ Legislation, the Law of Georgia "On Accounting, Reporting and Auditing" and the law of Georgia “On Facilitating the Prevention of Money Laundering and the Financing of Terrorism” against Entities and Members of their Governing Body” envisages a fine of 3 000 (Three Thousand) GEL for each fact of violation. Total – 3 000 (Three Thousand) GEL.

 

1 (One) fact of incorrect assessment of the risk of a legal entity without taking into account the risk factors determined by the Manual "On the Risk Assessment of Money Laundering and Terrorism Financing" approved by the Decree №82/04 of the President of the National Bank of Georgia on May 07, 2019 and 1 (One) fact of incorrect assessment of the risk of a natural person without taking into account the risk factors determined by the policy of the brokerage company. Which under the Article 5¹, Paragraph 3, sub-paragraph “f” of the Rule Approved by the Decree N35/04 (a version after amendment made on April 05, 2021) of the President of the National Bank of Georgia on February 14, 2012 “ On Determining, Imposing and Enforcing the Amount of Fines for Violations of the Securities’ Legislation, the Law of Georgia "On Accounting, Reporting and Auditing" and the law of Georgia “On Facilitating the Prevention of Money Laundering and the Financing of Terrorism” against Entities and Members of their Governing Body” envisages a fine of 3 000 (Three Thousand) GEL for each fact of violation. Total – 6 000 (Six Thousand) GEL.

 

Due to 3 (Three) facts of submission of incorrect information to the National Bank by the Report Approved by the Order of the President of the National Bank №48/04 of May 05, 2016, "The Procedure for Filling out and Presenting Information About the Risk of Money Laundering and Terrorism Financing of the Brokerage Companies", which under the Article 5¹, Paragraph 4, sub-paragraph “d” of the Rule Approved by the Decree N35/04 (a version after amendment made on April 05, 2021) of the President of the National Bank of Georgia on February 14, 2012 “ On Determining, Imposing and Enforcing the Amount of Fines for Violations of the Securities’ Legislation, the Law of Georgia "On Accounting, Reporting and Auditing" and the law of Georgia “On Facilitating the Prevention of Money Laundering and the Financing of Terrorism” against Entities and Members of their Governing Body” envisages a fine of 1 000 (One Thousand) GEL for each fact of violation. Total – 3 000 (Three Thousand) GEL.

1 (one) fact of non-submission of the documents, before the end of the on-site inspection period (until December 26, 2022), requested during the on-site inspection, by the agreement between the National Bank of Georgia and the Brokerage Company. In particular, after the end of the inspection period, on January 20, 2023, through the AML/CFT remote portal, the brokerage company submitted to the group of inspectors documents confirming the source of funds and source of wealth of 1 (one) natural person and 1 (one) legal entity. Which under the Article 5¹, Paragraph 2, sub-paragraph “f” of the Rule Approved by the Decree N35/04 (a version after amendment made on April 05, 2021) of the President of the National Bank of Georgia on February 14, 2012 “ On Determining, Imposing and Enforcing the Amount of Fines for Violations of the Securities’ Legislation, the Law of Georgia "On Accounting, Reporting and Auditing" and the law of Georgia “On Facilitating the Prevention of Money Laundering and the Financing of Terrorism” against Entities and Members of their Governing Body” envisages a fine of 5 000 (Five Thousand) GEL for each information/documentation requested by the agreement. Total – 5 000 (Five Thousand) GEL.

 

THE BROKERAGE COMPANY – LTD “TBC CAPITAL” (I/N 204929961) is fined in the total amount of 19 000 (Nineteen Thousand) GEL.