On the imposition of the financial fine on Microfinance Organization JSC “Crystal” (212896570)

 

1. During the inspection, 6 (six) cases of submitting information beyond the deadline and submitting inaccurate information to the inspection team was revealed, which according to the article 3, paragraph 3, subparagraph “n” of the “Rule for determining, imposing and enforcing of the fine to the microfinance organizations and their administrators” (as amended after April 5, 2021 – hereinafter – the “Rule of Fine”) adopted on February 5, 2020 by the order №16/04 of the President of the National Bank of Georgia envisages fine with the amount of GEL 2 000 (two thousand) on each case. Total - 12 000 GEL.
2. There were 2 (two) cases of non-submission of information/documentation to the group of inspectors by the microfinance organization before the end of the inspection period, which according to the article 3, paragraph 2, subparagraph “f” of the Rule of Fine (as amended after April 5, 2021) adopted on February 5, 2020 by the order №16/04 of the President of the National Bank of Georgia envisages fine with the amount of GEL 5 000 (five thousand) on each case. Total - 10 000 GEL.
3. During the inspection period, it was revealed that active, internal control documents did not meet the requirements set by the legislation, in particular, Article 29 of the Law of Georgia on Prevention of Money Laundering and Terrorist Financing (as well as National Bank guidelines). Which envisages a fine in the amount of GEL 5 000 (five thousand) in accordance with Article 3, paragraph 3, subparagraph “i” of the Rule of Fine (as amended after April 5, 2021). Total - 5 000 GEL.
4. During the inspection period, according to the article 3, paragraph 3 of the “Rule for accounting, storage and submission of transaction information by the accountable person to the Financial Monitoring Service of Georgia” there were 2 (two) facts of non-submission of suspicious report within the deadline. Above mentioned envisages a fine in the amount of GEL 5 000 (five thousand)  for each violation in accordance with article 3, paragraph 2, subparagraph “b” of the Rule of Fine (as amended after April 5, 2021). Total - 10 000 GEL.
5. During the inspection period, it was revealed that in 11(eleven) cases the microfinance organization did not take into account the relevant risk factors while assigning/reassessing client risks, defined by the legislation of Georgia, including the “Guidance on Legalization of Illegal Revenue and Terrorist Financing Ratification” approved by the President of the National Bank of Georgia №82/04 of May 7, 2019 and/or by the internal control documents approved by the microfinance organization. Above mentioned envisages a fine in the amount of GEL 3 000 (three thousand) for each violation in accordance with article 3, paragraph 3, subparagraph “f” of the Rule of Fine (as amended after April 5, 2021). Total - 33 000 GEL.
6. During the inspection period, there were 3 (three) cases of the microfinance organization providing services to any person (its representative and trustee, as well as third party if the transaction is competed in favor of a third party) and its beneficiary owner, which envisages a fine in the amount of GEL 500 (five hundred) for each violation in accordance with article 3, paragraph 2, subparagraph “f” of the Rule of Fine (as amended before April 5, 2021). Total – 1 500 GEL.
7. During the inspection period, was detected that a software (electronic) system established by the microfinance organization to facilitate the prevention of money laundering and terrorist financing was operating with significant defects, which envisages a fine in the amount of GEL 20 000 (twenty thousand) for each violation in accordance with article 3, paragraph 2, subparagraph “e” of the Rule of Fine (as amended after April 5, 2021). Total – 20 000 GEL.
8. During the inspection period, it was revealed that microfinance organization in 13 (thirteen) cases failed to report accurate information to the National Bank of Georgia under the provisions of the “Rules on filing and submitting illicit income legalization and Terrorism Financing Risk Supervision Reports by Microfinance organization”, which under article 2, paragraph 2, subparagraph “p” of the Rule of Fine (as amended before April 5, 2021), envisages a fine of GEL 1 000 (thousand) on each case of infringement. Total – 13 000 GEL.
9. During the inspection period, it was revealed that microfinance organization in 6 (six) cases failed to report accurate information to the National Bank of Georgia under the provisions of the “Rules on filing and submitting illicit income legalization and Terrorism Financing Risk Supervision Reports by Microfinance organization”, which under article 2, paragraph 4, subparagraph “d” of the Rule of Fine (as amended after April 5, 2021), envisages a fine of GEL 1 000 (thousand) on each case of infringement. Total – 6 000 GEL

 

Microfinance Organization JSC “Crystal” was fined with total amount of 110 500 GEL.