Georgian Prosecutor’s Office detains one person over $624 and €35m money-laundering scheme

The Prosecutor’s Office of Georgia, in cooperation with the country’s State Security Service, has uncovered a money-laundering operation involving $624 million and €35 million in illicit proceeds between 2022 and 2024, the body said on Tuesday.

One individual has been detained in connection with the case, the Office added.

The investigation found the suspect, operating a currency exchange business licensed by the National Bank of Georgia, deliberately violated the country’s anti-money-laundering and counter-terrorism financing laws and allegedly organised a network to collect, convert, and circulate funds of unknown origin into the legal economy.

With the help of accomplices, the suspect reportedly bypassed customs procedures to bring large sums of foreign currency into Georgia from neighbouring countries, concealing the cash in vehicles and delivering it to the exchange office. The collected funds were later deposited into banks under the guise of legitimate exchange activity, with falsified documentation provided to commercial banks to legitimise the transactions.

The proceeds were then laundered through further bank transfers, redistribution to third parties, and the purchase of movable and immovable property, integrating the illicit funds into the legal economy.

Through these operations, the suspect and criminal associates allegedly laundered around $624 million and €35 million over two years. Large amounts of cash have been seized as part of the ongoing investigation. Prosecutors will pursue the confiscation of criminally obtained assets in accordance with Georgian law.

The Prosecutor’s Office intends to request pretrial detention for the suspect. The charges carry a maximum sentence of up to 12 years in prison.

Authorities also noted that, in similar past cases, seven individuals were convicted, and about ₾13 million ($4.82mln) worth of assets were seized by court order.