One Person Detained Over Alleged Scheme of Laundering up to $700 Million
One person was arrested in connection with an alleged scheme to launder an “unprecedented” USD 624 million and EUR 35 million between 2022 and 2024, the Prosecutor’s Office of Georgia said on September 16, without revealing the suspect’s identity.
The suspect is accused of setting up a criminal network to smuggle and launder money through a currency-exchange business, converting the funds in commercial banks by providing false information about their origin. He faces up to 12 years in prison on money-laundering charges.
According to the prosecutors, the person operated “under the cover of a National Bank–authorized currency exchange office in his ownership”, organizing an illegal network to collect funds of unfounded origin, convert them to alter their source, and place them into legal circulation.
That members of the criminal group, acting in “preliminary agreement,” allegedly regularly smuggled “especially large amounts” of foreign currency of “unfounded origin” from neighboring countries, concealing it in special places in vehicles to bypass customs, and delivered it to a currency exchange office.
To launder the foreign currency, the suspect allegedly took the funds to commercial banks over time, presenting them as legitimate earnings from a currency-exchange business and providing false data about their origin. After converting the money at the banks, the suspect then allegedly introduced it into the legal economy by handing it to others for further handling and by purchasing real estate.
The Prosecutor’s Office said the scheme was uncovered in a joint operation with the State Security Service of Georgia, adding that large amounts of cash were seized as part of investigative actions, and steps will be undertaken to seize the illicit funds and other assets for the benefit of the state.
The agency added that seven other individuals have previously been convicted of similar offenses, with assets worth up to GEL 13 million (about USD 5 million) confiscated in total.
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