AML obligations depend on whether the activity falls within the statutory category of accountable entities; not every company has identical bank-style KYC duties.
Applicable legislation: Law on Facilitating the Prevention of Money Laundering and Terrorism Financing
Which businesses have reporting-entity duties
Start by mapping the actual services performed against the statutory list of reporting entities. Holding a bank account, receiving a cross-border transfer or owning digital assets does not automatically subject every company to every AML reporting obligation.
For example, accepting payment for the company’s own goods raises different questions from providing exchange or custody services for clients. The latter can engage National Bank registration and specific reporting-entity obligations.
Relevant statutory provisionWhich businesses are subject to AML duties
Not every company in Georgia is subject to identical customer due diligence obligations. Article 3 identifies accountable entities. Assess the services the business actually supplies rather than relying on its registered company name. Ordinary trading on one’s own account and providing virtual-asset exchange services for others raise different questions. Determine the relevant supervisor and registration regime before launching regulated activity. Read the governing source
Customer due diligence and the ultimate beneficial owner
Where the business is an accountable entity, the process should cover customer identity, authority of representatives and identification of the ultimate beneficial owner. A passport copy of a corporate representative does not show who ultimately controls a multi-layer holding structure. Article 13 defines the beneficial owner in terms of a natural person. The extent of verification depends on customer and transaction risk, with documented reassessment where circumstances change. Read the governing source
Records, monitoring and reporting
Accountable entities require rules for transaction records, ongoing monitoring and escalation of reportable concerns. Article 27 includes a general five-year record-retention framework with scope for extension on a justified request from the competent authority. Responsibility, restricted access and escalation should be assigned in actual operating procedures. A policy that has never been implemented is not effective compliance. Read the governing source
Worked scenario: foreign customer and substantial advance
An LLC receives a GEL 120,000 advance from an overseas buyer. The amount alone neither proves laundering nor automatically makes the LLC an accountable entity. Identify the service sold, the customer and the business purpose; retain the agreement, invoice, banking and delivery evidence. If the activity itself qualifies as accountable, separate statutory due diligence and monitoring controls will also apply.
Determine whether you are covered
Identify the real services performed and compare them with statutory categories of accountable entities under the AML/CFT framework. Incorporation as a legal person alone does not establish every regulated duty.
CDD and beneficial ownership
Where covered, set out when identity is verified, how authority and beneficial ownership are established, and which red flags trigger enhanced due diligence. A passport copy alone does not identify a corporate beneficial owner.
Sanctions and transaction controls
Sanctions screening and AML monitoring are related but distinct. Record beneficial-owner screening, escalations and case-specific indicators. Foreign nationality or transaction volume alone does not prove wrongdoing.
Governance and retention
Set clear compliance ownership, training, periodic risk assessment and lawful record retention. Reporting and recordkeeping timelines must be verified for the specific regulated activity and competent supervisor.
Case scenario
A small consultancy receives a large advance from an overseas customer. First separate statutory AML status from bank requests, then retain contracts, invoices and commercial purpose. Do not assume the consultancy is a regulated AML entity without analysing its activities.