Georgian Prosecutor’s Office demands UK bank accounts of TBC Bank founders be frozen
Public institutions in Georgia are being used as a tool for political persecution, so their requests should always be checked for validity and purpose," said Badri Japaridze, one of TBC Bank's co-founders. Photo: Mzia Saganelize/RFE/RL.
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The Prosecutor's Office of Georgia has requested the UK bank accounts of TBC Bank founders Mamuka Khazaradze and Badri Japaridze be frozen.
Public institutions in Georgia are being used as a tool for political persecution, so their requests should always be checked for validity and purpose," said Badri Japaridze, one of TBC Bank's co-founders.
The co-founders of TBC Bank urge the embassies of the United Kingdom, the United States and the European Union to actively “engage in the process of uncovering public institutions used for purely criminal acts".
It is very important not to allow the use of the prosecution, court, and financial monitoring services of Georgia as a tool to prosecute [political opponents]”, said Badri Japaridze.
Khazaradze and Japaridze were charged on July 24, 2019 for laundering $16,664,000.
Bail was set for both of them at 700,000 GEL ($237,974/€214,257) on July 2 – they both posted bail yesterday on August 26.
The Georgian Chief Prosecutor’s Office originally demanded bail be set at 1 million GEL (about $0.34/€0.31 million).
TBC Bank co-founder Mamuka Khazaradze said on August 20 that the equivalent of more than $16 million had been frozen on his accounts and on those of co-founder Badri Japaridze per a request of the Prosecutor’s Office.
This action serves only one purpose – to bring an end to the public movement we have announced and to all ongoing charity and business projects, including Anaklia. We are not scared! We continue the struggle!” Khazaradze wrote on his Facebook page at the time.
The case dates back to 2008, when LTD Samgori M and LTD Samgori Trade received a $17 million loan in an accelerated manner from TBC Bank without providing anything in collateral.
On the same day, the same amount was placed onto the personal accounts of Khazaradze and Japaridze, the Georgian Prosecutor’s Office claims.
Khazaradze and Japaridze deny the charges against them, and say that the case discredits the bank and affects the country’s economic image at large.
They said that the transaction in question took place in full compliance with the law and that leading financial institutions have confirmed this in audits.
In addition to the co-founders of TBC Bank, Georgian businessman, Avtandil Tsereteli, co-owner of the companies Samgori Trade and Samgori M, was charged in late August earlier as an accomplice.
Georgian businessman Avtandil Tsereteli has been charged as an accomplice in a money laundering case concerning the founders of TBC Bank Badri Japaridze and Mamuka Khazaradze, who have been charged with laundering $16,164,000.
TBC Bank co-founder Mamuka Khazaradze says that the equivalent of more than $16 million has been frozen on his accounts and on those of co-founder Badri Japaridze per a request of the Prosecutor’s Office.
A Tbilisi City Court has set 700, 000 GEL bail each for TBC Bank co-founders Mamuka Khazaradze and Badri Japaridze. They also have been banned from leaving the country without the consent of the prosecutors. The Georgian Chief Prosecutor’s Office demanded one million GEL bail from each as a restraining measure.
The Prosecutor's Office says that its Financial Monitoring Service launched a study of financial assets of TBC Bank, its client companies, bank administrators and particular shareholders in May 2018, which revealed that there were “signs of money laundering”.
TBC Bank founders Mamuka Khazaradze and Badri Japaridze, charged with laundering $16,664,000, are going to appeal to the European Court of Human Rights in the near future, their lawyer Zviad Kordzadze says.
Georgian businessman Avtandil Tsereteli, accused of complicity in the money laundering case concerning TBC Bank founders Mamuka Khazaradze and Badri Japaridze, has posted 500,0000 GEL ($168,350/€152,728) bail, his lawyer Kakha Tsereteli says.
TBC Bank co-founder Badri Japaridze intends to sue Deputy Chairman of Parliament Gia Volski for ‘slander and degrading statements against the honour and dignity of himself and co-founder Mamuka Khazaradze.