Central bank appoints temporary administration to InvestBank

National Bank of Georgia (NBG), has appointed a temporary administration in the JSC InvestBank for a two-month period, citing unspecified serious irregularities in the banks operations.

President of the National Bank of Georgia Giorgi Kadagidze has not given details about what kind of irregularities have been found by the team of NBGs inspectors.

"I cannot speak about nature of these irregularities as it represents confidential information at this stage. Based on seriousness of these irregularities that a team of inspectors have found, we decided to appoint a temporary administrator, Kadagidze said at the press conference.

Giorgi Gzirishvili, general director of InvestBank, said that a routine inspection revealed "certain irregularities which led to appointment of temporary administration by the central bank. He said it will not affect banks daily work and service to its clients.

InvestBanks officials even have not discussed the details of irregularities saying that it would not affect banks daily work.

The shareholders of the bank are Liechtenstein-based KSN Foundation (70%) and Great Britain based Trendfor Holding LTD(30%), according to the information of banks official web-site.

Moreover, Wall Street Journal reported June 2013 that three Iranian nationals gained control of the InvestBank in 2011 through Liechtenstein-based KSN Foundation. According to the same report, the U.S. Treasury was investigating the bank on concerns it could be used to bypass U.S. sanctions on Iranian banks.