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 laws against bribery and mechanisms for public officials to disclose their financial assets. Despite these efforts, challenges remain, particularly in addressing high-level corruption and the influence of vested interests in political and economic spheres, which undermine public trust in governance.

The country faces various criminal activities, including human trafficking, drug trafficking, and financial crimes, with organized crime networks often comprising poorly organized groups alongside more sophisticated actors. While the government is working to enhance its anti-corruption and law enforcement capabilities, issues such as executive interference in the judiciary, resource limitations, and a lack of transparency continue to hinder effective crime prevention and resilience.

Georgia's economy, strategically located at the crossroads of Western Asia and Eastern Europe, has undergone significant reforms since gaining independence in 1991, resulting in a stable and open market that thrives on international trade, tourism, and transportation. The country has demonstrated impressive economic resilience, achieving an average growth rate exceeding five percent from 2005 to 2023, and recently rebounding strongly from the impacts of the COVID-19 pandemic and geopolitical tensions, with a growth rate of 7.5 percent in 2023. Despite a favorable business climate and high rankings in transparency and economic freedom, challenges remain, particularly regarding judicial independence and the efficiency of local government processes, which continue to affect investor confidence and the overall investment climate.