1.  Five (5) instances of incorrect submission to the “Financial Monitoring Service of Georgia” of information in its possession regarding operations/transactions subject to monitoring, in accordance with subparagraph “a” of paragraph 1 of Article 6 of the Rule on the Accounting, Storage and Submission to the Financial Monitoring Service of Georgia of Information on a Transaction by an Accountable Person, approved by Order No. 1 of the Head of the Financial Monitoring Service of Georgia dated 5 June 2020. Pursuant to subparagraph “m” of paragraph 3 of Article 3 of the Rule on Determining, Imposing and Enforcing Monetary Penalties on Microfinance Organizations and Their Administrators, approved by Order No. 16/04 of the President of the National Bank of Georgia dated 5 February 2020 (hereinafter – the “Penalty Rule”), such violations are subject to a fine of 2,000 (two thousand) GEL for each instance. For the five (5) violations referred to in this paragraph, the monetary penalty to be imposed on the microfinance organization amounts to 10,000 (ten thousand) GEL;
2.  During the inspection period, the microfinance organization submitted incorrect information to the National Bank of Georgia on 6 (six) occasions. According to Article 3, paragraph 3, subparagraph “p” of the Rule on Determining, Imposing, and Enforcing Monetary Penalties on Microfinance Organizations and Their Administrators, approved by Order No. 16/04 of the President of the National Bank of Georgia dated 5 February 2020 (hereinafter – the “Penalty Rule”), each such violation is subject to a fine of 2,000 (two thousand) GEL. For the six (6) violations referred to in this paragraph, the total fine imposed on the microfinance organization amounts to 12,000 (twelve thousand) GEL;
3.  The microfinance organization violated the requirements of Article 11 of the Rule on the Recording, Storage, and Submission of Information on Transactions by the Accountable Person 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, in relation to three (3) clients. Specifically, the mentioned three (3) clients were not recorded by the microfinance organization through the special software (electronic) system, which, pursuant to subparagraph “k” of paragraph 2 of Article 3 of the Penalty Rule, entails a fine of 10,000 (ten thousand) GEL for each violation. For the three (3) violations mentioned in this paragraph, the total fine to be imposed on the microfinance organization amounts to 30,000 (thirty thousand) GEL.
4. The microfinance organization violated the requirement set forth in Article 10, Paragraph 5 of the Law of Georgia on the Prevention of Money Laundering and Combating the Financing of Terrorism in relation to 5 (five) clients by failing to conduct business relationship monitoring in accordance with the legislation, specifically the examination of transactions. Additionally, in relation to 5 (five) clients, the organization violated the requirement established by subparagraph “e” of Paragraph 1 of Article 18 of the same law by failing to conduct the examination of transactions and/or the origin of property (funds) in accordance with the legislation. Pursuant to subparagraph “z” of paragraph 3 of Article 3 of the Penalty Rule, this entails a fine of 3,000 (three thousand) GEL for each client. For the violations concerning 10 (ten) clients mentioned in this paragraph, the total fine to be imposed on the microfinance organization amounts to 30,000 (thirty thousand) GEL.
5.  The microfinance organization failed to implement the preventive measure stipulated by Article 10, Paragraph 4 of the Law of Georgia on the Prevention of Money Laundering and Combating the Financing of Terrorism in relation to 6 (six) clients, specifically, the microfinance organization did not determine the nature of the client's business in relation to the mentioned clients. Pursuant to subparagraph “th” of paragraph 3 of Article 3 of the Penalty Rule, this entails a fine of 2,000 (two thousand) GEL for each violation. For the 6 (six) violations mentioned in this paragraph, the total fine to be imposed on the microfinance organization amounts to 12,000 (twelve thousand) GEL.
In total, Microfinance Organization Rico Express LLC (Identification Number: 205034639) was fined 94,000 (ninety-four thousand) GEL.