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 December 2023. According to the follow-up Evaluation, Georgia was deemed Compliant for 7 and Largely Compliant for 22 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 the Anti-Corruption Bureau and improvements in asset declaration, challenges remain, particularly in addressing high-level corruption and ensuring the independence of law enforcement agencies. While Georgia has made strides in reducing visible low-level corruption, issues persist in the judiciary and public procurement, and the country is not a signatory to the OECD anti-corruption convention.

Georgia has developed a stable market economy characterized by significant reforms since gaining independence in 1991, leading to an average growth rate of over five percent from 2005 to 2023. The economy rebounded strongly post-COVID-19, achieving 10.4 percent growth in 2021 and 10.2 percent in 2022, driven by tourism and financial inflows, with a continued growth forecast of five to seven percent for 2024.

Georgia offers a favorable investment climate characterized by a stable and transparent market economy, which has been bolstered by significant economic reforms since 1991. The country ranks highly in international assessments for transparency and competitiveness, although challenges remain in the judicial sector regarding the timely resolution of commercial disputes. Despite these issues, Georgia continues to attract foreign investment, supported by a Bilateral Investment Treaty with the United States and various government initiatives aimed at promoting foreign direct investment.