National Bank of Georgia announces regulations to prevent violation of int’l sanctions by domestic banks

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.