Georgia Country Summary

FATF Status

Georgia is not on the FATF List of Countries that have been identified as having strategic AML deficiencies

Compliance with FATF Recommendations

The last follow-up Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Georgia was undertaken in October 2024. According to the follow-up Evaluation, Georgia was deemed Compliant for 7 and Largely Compliant for 24 of the FATF 40 Recommendations. It remains Highly effective for 0 and Substantially Effective for 2 of the Effectiveness ratings.

Georgia has established a legal framework to combat corruption, including criminalizing bribery and requiring public officials to disclose their financial assets. Despite some progress, such as the creation of an Anti-Corruption Bureau and improvements in asset declaration, challenges remain in addressing high-level corruption and ensuring the independence of anti-corruption institutions. The country also faces issues related to human trafficking, organized crime, and financial crimes, with ongoing efforts to enhance governance and public trust.

Georgia has developed a relatively stable market economy since gaining independence in 1991, characterized by significant economic reforms and a favorable business climate. The country has experienced robust growth rates, averaging over five percent annually from 2005 to 2023, with a notable rebound of 10.4 percent in 2021 and 7.5 percent in 2023, driven by tourism and foreign capital inflows. Despite challenges such as judicial inefficiencies and political interference, Georgia ranks favorably in international assessments for transparency and economic freedom.

Georgia has established a favorable investment climate characterized by a commitment to economic reforms and a stable market economy, which has led to consistent growth rates exceeding five percent from 2005 to 2023. The government actively promotes foreign investment through legislation that protects investors and provides a supportive framework, although challenges remain in the judicial sector regarding the timely resolution of commercial disputes. Despite these issues, Georgia ranks favorably among its regional peers as a desirable destination for business and investment.