National Bank of Georgia announces regulations to prevent violation of int’l sanctions by domestic banks
The National Bank of Georgia on Monday announced regulations to prevent financial violations related to Iran. Photo: NBG
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The National Bank of Georgia on Monday said it had developed a set of regulations to prevent violation of international sanctions imposed on various countries by partner states or blocs in financial transactions facilitated by domestic commercial banks.
The comment comes on the heels of recent reports on unspecified Asian countries using the Iranian territory for transporting goods to other countries and ensure reduction of costs, with Iran under full-scale sanctions of the United States for its nuclear programme and aid to terrorist groups.
The NBG said transactions directly or indirectly related ro Iran or goods of Iranian origin could be considered to violate the sanctions imposed on the country, and called on domestic financial institutions to exercise caution, noting violations could create the risk of delaying Georgia’s financial operations abroad.
In a bid to comply with the requirements of the international sanctions imposed by the US on Iran, [domestic] commercial banks are required to implement enhanced preventive measures against individuals related to Iran, and enhanced monitoring of transactions related to the country in question”, the national bank added.
It also noted the new regulations, developed with the involvement of commercial banks, were aimed at “significantly reducing” the risks of violations of international sanctions by domestic financial institutions.
The 2022 Investment Climate Statements released by the United States Department of State on Thursday said the National Bank of Georgia and Georgian financial institutions were acting "fully in accordance" with the financial sanctions imposed by the United States and others on Russia due to its invasion of Ukraine.
Commercial banks in Georgia loaned ₾43.12 billion ($14.67bln/€13.86bln) and received deposits of ₾37.15 billion ($12.64bln/€11.94bln) in April 2022, the latest data from the National Bank of Georgia shows.
The National Bank of Georgia on Thursday said it "categorically rules out" the possibility of individuals sanctioned in response to Russia’s invasion of Ukraine carrying out “any kind of financial transaction” using the Georgian banking sector.
The National Bank of Georgia (NBG) projects Georgia's economic growth will hit three percent in 2016.
Commercial banks in Georgia loaned ₾43.65 billion ($16.17bln) and received deposits of ₾42.62 billion ($15.79bln) in November 2022, the latest data from the National Bank of Georgia shows.
Commercial banks in Georgia loaned ₾44.80 billion ($16.94bln) and received deposits of ₾44.31 billion ($16.76bln) in December 2022, the latest data from the National Bank of Georgia shows.
The National Bank of Georgia on Wednesday said media reports on a fine imposed by the body on a financial institution were “inaccurate” without the context of the recipient of the penalty being only one of entities to be fined over the recent years.
Archil Mestvirishvili, the Acting Governor of the National Bank of Georgia, on Monday said compliance with international sanctions imposed on Russia for its invasion of Ukraine was “very important”, and the Georgian financial sector was taking the matter “very seriously”.