The National Bank of Georgia will enforce international sanctions on a citizen only by a Georgian court’s decision

National Bank of Georgia on U.S. sanctions

On September 18, the National Bank of Georgia issued a statement regarding the sanctions imposed by the U.S. Department of the Treasury against four Georgian citizens. The statement clarified that, according to an order by acting Governor Natia Turnava, “sanctions against a Georgian citizen will only be applied if they are based on a conviction by a Georgian court that has come into legal force.”

The National Bank also emphasized that the Georgian financial sector adheres strictly to sanctions regulations and that Georgia has never been, nor will it become, a place for evading sanctions.

The U.S. sanctioned Georgia’s special forces chief, his deputy, and leaders of the pro-Russian Alt-Info movement

Visa restrictions have also been imposed on more than 60 members of the Georgian government and parliament, including their family members

The National Bank revised its regulations in 2023 following the case of former Prosecutor Otar Partskhaladze

On September 14, 2023, the U.S. imposed sanctions on Partskhaladze for his cooperation with Russia’s FSB. Initially, the National Bank complied with international law and froze his accounts. However, on September 19, it changed its rules regarding sanctioned individuals.

It was decided that international sanctions cannot be applied to a Georgian citizen without a conviction by a Georgian court. Partskhaladze’s accounts were unfrozen.

The International Monetary Fund expressed “additional concern” over these regulatory changes.

U.S. State Department imposes visa restrictions on 60 more for “undermining Georgia’s democracy”

“The State Department is concerned about human rights violations and anti-democratic actions in Georgia” – Antony Blinken

Commentary:

Giorgi Kakauridze, First Deputy Minister of Finance of Georgia: “Don’t ask me about the legal grounds for the National Bank’s statement. I can only say that Georgian banks will not face obstacles in implementing U.S. Treasury sanctions.

They must ensure compliance with Georgian law. But I also know that all of them are upholding international sanctions. Yesterday, the Banking Association stated that banks will not deviate from their international obligations.”

National Bank of Georgia’s decision on sanctions raises doubts about financial stability – IMF

The program they support in Georgia has not been stopped

Who and why are affected by the new U.S. sanctions

The U.S. Department of the Treasury has imposed sanctions on Zviad Kharaishvili, the head of Georgia’s special forces (known as Kharaba), his deputy Mileri Lagazauri, and leaders of the pro-Russian movement Alt-info, Konstantine Morgoshia and Zurab Makhardze.

Additionally, the U.S. State Department has imposed visa restrictions on over 60 members of the Georgian government and parliament, including their families, for “undermining democracy.”

Both Kharaishvili and Lagazauri have been included on the so-called “Magnitsky List” due to their involvement in violence against opponents of the government’s controversial “foreign agents law.”

The U.S. Department of the Treasury has also announced that all assets and property of these individuals located in the U.S. or under U.S. jurisdiction will be blocked.