The Investigation Service of the Ministry of Finance of Georgia, in coordination with the Office of the Prosecutor General, has detained five individuals from the Russian Federation for engaging in illicit entrepreneurial conduct and money laundering.
According to the investigation, one of the implicated companies operated without proper registration or authorisation from the National Bank of Georgia. It provided virtual asset services through an unauthorised office and a so-called courier service. Over recent months, the company conducted virtual asset transactions worth hundreds of millions of GEL, engaging in unregulated international dealings within the country.
The investigation also revealed that the Russian nationals allegedly bypassed border controls by smuggling large amounts of foreign currency into Georgia by car, subsequently using these funds to purchase virtual assets. They then legitimised undocumented assets, despite no record of any payments having been made to the state budget by the involved companies or individuals.
As part of the operation, investigators executed searches at multiple locations in Tbilisi, seizing USD 371,000, financial records, documentation, and computer equipment from the company’s office. Additionally, USD 100,000 was confiscated from one individual involved in virtual asset purchases, and USD 250,000 was seized from vehicles with Russian Federation licence plates, bringing the total amount of seized funds to USD 721,000.
The investigation is being conducted under Article 192, Part 2, Subparagraph “a”, and Article 194, Part 2, Subparagraphs “a” and “c” of Part 3, of the Criminal Code of Georgia, which stipulate prison sentences of nine to twelve years.
The authorities are also actively working to identify and apprehend other individuals involved in these criminal acts, as well as to uncover further evidence of tax evasion and the possible legalisation of illicit income.
The Investigation Service of the Ministry of Finance of Georgia reaffirmed its unwavering commitment to combating financial and economic offences, maintaining a firm stance and a rigorous approach under the criminal law.
