US State Department report: National Bank of Georgia, financial institutions in “full accordance” with Russia sanctions

The report highlighted the National Bank had established a new unit responsible for elaboration of guidelines on international sanctions’ compliance to ensure “proper and efficient” monitoring by financial intuitions. Photo:GettyImages

Agenda.ge, 27 Jul 2023 - 16:52, Tbilisi,Georgia

The 2023 Investment Climate Statements of the United States Department of State on Thursday said the National Bank of Georgia and financial institutions of the country were acting “fully” in accordance with the international financial sanctions imposed on Russia for its invasion of Ukraine.

The report highlighted the National Bank had established a new unit responsible for elaboration of guidelines on international sanctions’ compliance to ensure “proper and efficient” monitoring by financial intuitions.

It also noted the body had assisted representatives of the financial sector to understand and fulfil requirements envisaged by the sanctions’ enforcement. 

Compliance with international financial sanctions is systematically checked during the onsite inspections of financial institutions. The NBG closely cooperates with OFAC, OFSI, and EU relevant bodies for receiving guidance on particular issues and resolving specific questions related to sanctions”, the document said.

Following Russia’s full-scale invasion of Ukraine, the EU, United Kingdom and US imposed sanctions on several Russian banks, including the state-owned VTB Bank which has a subsidiary in Georgia. 

To adhere to the sanctions, Georgia’s National Bank banned VTB Georgia from servicing individuals, borrowers and depositories in transactions in dollars, euros and other foreign currencies.