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 financial disclosures from public officials. Despite some progress, such as the creation of the Anti-Corruption Bureau and improvements in asset declaration regulations, challenges remain in addressing high-level corruption and ensuring the independence of law enforcement agencies. While corruption presents a low business risk overall, issues persist in the judiciary and public procurement, necessitating further reforms to enhance enforcement and transparency.

Georgia has developed a stable market economy since gaining independence in 1991, characterized by significant reforms and a favorable business climate. The economy has shown resilience, with an average growth rate exceeding five percent from 2005 to 2023, and a notable rebound post-COVID-19, achieving 10.4 percent growth 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 regional comparisons for business and investment conditions.

Georgia has established a favorable investment climate characterized by a commitment to economic reforms and a stable market economy, which has led to high rankings in transparency and competitiveness. Despite challenges such as judicial inefficiencies and selective law enforcement, the government actively promotes foreign direct investment through supportive legislation and initiatives, including a Bilateral Investment Treaty with the United States. The country has seen significant economic growth, driven by sectors like tourism and logistics, and continues to attract foreign capital.