On Imposing a Financial Sanction on the CURRENCY EXCHANGE BUREAU – LTD “Dzmebi” (I/N 418472138)

Due to the non-fulfillment of the Article 29 paragraphs 1 and 2 of the Law of Georgia “On Facilitating the Prevention of Money Laundering and the Financing of Terrorism”, In particular, policy implemented by currency exchange bureau related to internal control does not meet the requirements set by the legislation (as well as the guidelines of the National Bank), which according to the Article 3, paragraph 3, sub-paragraph “i” of the Rule Approved by the Decree №17/04 (a version after amendment made on April 5, 2021) of the President of the National Bank of Georgia on February 5, 2020 “On Determining, Imposing and Enforcing of the Fines to the Currency Exchange Operators and its Administrators” envisages a fine of 3 000 (Three Thousand) GEL.

Due to the non-fulfillment of the Article 27 paragraph 6 of the Law of Georgia “On Facilitating the Prevention of Money Laundering and the Financing of Terrorism”, In particular, electronic system (hereinafter – “The Software”) instilled by the bureau is not able to detect related, unusual and suspicious transactions. In addition, the software cannot verify the customers, their beneficial owners, persons authorized to direct and represent legal persons, and other persons participating in the transaction against the lists of sanctioned and politically exposed persons. Which under the Article 3, Paragraph 2, sub-paragraph “e” of the Rules Approved by the Decree N17/04 (a version after amendment made on April 5, 2021) of the President of the National Bank of Georgia “On Determining, imposing and enforcing of the fines to the Currency Exchange Bureau and its Administrators” envisages a fine of 10 000 (Ten Thousand) GEL.

As a result of the inspection, it was revealed that the submission of the initial registration form to the Financial Monitoring Service had been delayed by the Currency Exchange Bureau. Delayed submission of the initial registration form Approved by the Order of the Head of the Financial Monitoring Service of Georgia №1 of June 18, 2012, “On the Procedure for Receiving, Systematizing, Processing and Transferring Information to the Financial Monitoring Service of Georgia by Currency Exchange Bureaus” envisages a fine of 3 000 (Three Thousand) GEL according to the Article 3, paragraph 2, sub-paragraph “a” of the Rule Approved by the Decree №17/04 (a version after amendment made on April 06, 2021) of the President of the National Bank of Georgia on February 5, 2020 “On Determining, Imposing and Enforcing of the Fines to the Currency Exchange Operators and its Administrators”. Total - 3 000 (Three Thousand) GEL.

The Currency Exchange Bureau – LTD “DZMEBI” (I/N 418472138) is fined in the total amount of 16 000 (Sixteen Thousand) GEL.