NBG Fines Cartu Bank for Violating Anti-Money Laundering Rules
The National Bank of Georgia (NBG) has imposed a monetary fine of GEL 64,000 on JSC Cartu Bank, founded by Bidzina Ivanishvili, a reclusive patron of the ruling Georgian Dream party.
The central bank said in its statement that seven violations were related to the Law on Facilitating the Suppression of Money Laundering and Terrorism Financing and the guidelines derived from it. One case was related to failure to comply with the requirements to take appropriate measures against a politically exposed person.
The decision of the NBG to publicize the fine on Cartu Bank, which has also been imposed on other financial institutions, comes in the context of conflict between the central bank and the ruling party. On February 9, the Parliament rushed through the amendments to the Organic Law on the National Bank of Georgia. The Bank said the amendments would limit the board’s function as an independent oversight body. On February 24, President Salome Zurabishvili vetoed the amendments, saying that “such amendments “are neither necessary, nor urgent, nor well-founded.” The ruling party has enough votes to overcome the veto, which would require 3/5 of the MPs to vote in favor.
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