National Bank of Georgia tightens control over banking operations with Iran

The National Bank of Georgia has ordered the country’s commercial banks to carry out enhanced preventive measures against persons associated with Iran, as well as conduct enhanced monitoring of transactions with this country, Report informs referring to the Georgian media.

This decision was made in order to comply with the requirements of international sanctions imposed by the US against Iran.

The National Bank urged commercial banks, if there is a risk of violating sanctions, not to make transactions of this type.

“With the involvement of the National Bank and commercial banks, a regulation has been developed that defines in detail the requirements, compliance with which will significantly reduce the risks of commercial banks violating the requirements of international sanctions,” the statement says.

The National Bank notes that the implementation of this document is mandatory for all commercial banks and is aimed at reducing the risks associated with international correspondent relations and compliance with the sanctions regime.

In addition, commercial banks are authorized to use even tighter controls in accordance with their internal policies and procedures.

According to the regulator, in recent months, in order to reduce significantly increased transport costs due to the COVID-19 pandemic, there have been cases of using the Iranian transit corridor during the import of goods from some Asian countries.

“Banking operations directly or indirectly related to Iran or goods of Iranian origin, including bank settlements related to the transportation of goods through the territory of Iran or using means of transport registered in Iran (air, sea, land, rail), under the conditions of full-scale US sanctions against Iran may be considered a violation of US-imposed international sanctions,” the statement said.

The National Bank stated that such operations within the framework of correspondent relations of the banking sector create a risk of obstacles to conducting operations in foreign currency outside the country.