November 26, 2024

Registration of Currency Exchange Points in Georgia: Key Requirements

The National Bank of Georgia introduced updated regulations for currency exchange points, with the aim of enhancing operational transparency, safeguarding consumer rights, and mitigating risks related to money laundering.
The registration process for currency exchange points requires strict adherence to these established legal requirements. The key conditions for registration include:
Submission of Documentation: - Copies of identification documents for directors and owners. - Extracts from the register of entrepreneurs and non-profit legal entities, including details of beneficiaries. - A certificate of no criminal record, confirming the good standing of the business owners.
Operational and Technical Standards: - The exchange point must have a minimum operational area of 4 square metres, enclosed, with the exception of those located in hotels, airports, and other designated locations. - The premises must be equipped with video surveillance systems, counterfeit money detectors, and specialised software for managing transactions.
Contracts and Cooperation: - A formal agreement with the Police Department of the Ministry of Internal Affairs to install an alarm system. - A contractual agreement with an accredited provider for software solutions to manage accounting.
Transparency and Information Disclosure: - Exchange rates and commission details must be clearly displayed in both Georgian and English. - A copy of the registration certificate issued by the National Bank should be displayed in a prominent location within the exchange point.
Currency exchange points must also comply with Georgian anti-money laundering legislation, which includes submitting quarterly reports and adhering to internal control standards.
Consequences of Non-ComplianceThe National Bank holds the authority to revoke the registration of any exchange point that fails to comply with the regulations, submits false documentation, or disregards official instructions. Non-compliance may result in fines ranging from 500 to 20,000 GEL, depending on the seriousness of the violation.
These regulations are designed not only to protect consumers but also to create a competitive and transparent environment for business operations in Georgia.
Rokhvadze&Partners offers expert assistance in registering currency exchange points, from document preparation to legal advice, ensuring full compliance with the National Bank of Georgia's requirements.