Lawyer Ekaterine Egutia, co-founder of the New York–registered law firm IK Law Office, believes the National Bank of Georgia (NBG) is unlikely to grant a banking license to the planned “Imedi Bank.”
Speaking on BMGTV, Egutia said issuing such a license could be interpreted as assisting a sanctioned individual in circumventing UK sanctions, which would also create a risk of sanctions against the regulator itself and damage the reputation of Georgia’s financial sector. The discussion followed the UK’s decision to sanction pro-government TV channels Imedi and POSTV, after which Imedi announced plans to create its own bank with financial backing from supporters.
According to Egutia, banking regulations require full disclosure of beneficial owners, who must not be sanctioned or linked to sanctions lists from the UK, the United States, or the European Union. She noted that even if the National Bank is obligated to review an application, it should ultimately reject it if sanctioned individuals or related entities are involved.
She also stressed that Georgian banks would face serious international risks if they conducted transactions with sanctioned entities. Banks operating in Georgia rely on correspondent banks such as Deutsche Bank and Citibank for dollar and euro transfers, and any cooperation with sanctioned clients could jeopardize those relationships and their ability to process international payments.
Egutia warned that granting a license to a bank linked to sanctioned individuals could also damage investor confidence and Georgia’s financial stability, particularly for banks listed on international exchanges. In the worst case, she said, such a decision could create a sanctions risk for the National Bank itself, which would have severe consequences for the country’s entire financial system.
