Laundering & Combating Terrorism Financing Policy
1.1. This Policy
for prevention of money laundering and terrorist financing, and compliance with
international sanctions (hereinafter Policy), lays down requirements for screening
Clients (as defined in section 2.7) and Transactions (as defined in section
2.6) in order to prevent entering into deals involving suspected Money
Laundering and Terrorist Financing, and to ensure identification and reporting
1.2. The obligation
to observe the Policy rests with the Chief Executive Officer and employees of
the Provider of product, including temporary staff, and agents of the Provider
of product who initiate or establish a Business Relationship (as defined in
section 5), hereinafter all together called the Representative. Every
Representative must confirm awareness of the Policy with a signature.
policy establishes standards defined according to the principles
contained in the 49 Recommendations of Financial Action Task Force (FATF),
the Law of Georgia on Facilitating the Prevention of Illicit Income
Legalization, and international best practices regarding the prevention of the
use of the financial system for money-laundering and the financing of terrorism.
Laundering – A set of activities with the property derived from criminal
activity or property obtained instead of such property with the purpose to:
i. conceal or
disguise the true nature, source, location, disposition, movement, right of
ownership or other rights related to such property;
transfer, acquire, possess or use such property for the purpose of concealing
or disguising the illicit origin of property or of assisting a person who is
involved in criminal activity to evade the legal consequences of his or her
participation in, association to commit, attempts to commit and aiding,
abetting, facilitating and counselling the commission of any of the actions
referred to subsections 2.1.i and 2.1.ii.
of Terrorism – Providing or collecting funds for a terrorist or for terrorist
organizations with the intention that they are used or knowing and willing that
they are to be used, even without being linked to a specific act, in full or in
part, in perpetration of acts that are set forth as a crime under the law.
International Sanctions – A list of non-military measures decided by the
European Union, the United Nations, Office of Foreign Assets Control (OFAC),
another international organization or the government of the Georgia and aimed
to maintain or restore peace, prevent conflicts and restore international
security, support and reinforce democracy, follow the rule of law, human rights
and international law.
Officer or CO – A representative appointed by the Chief Executive Officer
responsible for the effectiveness of the Policy.
Relationship – The relationship of the Provider of product established in its
economic and professional activities with the Client.
– A cash flow or payment order, wire transfer, credit/debit card payment or
cryptocurrency wiring form a Client to the Provider of product.
2.7. Client – A
natural or legal person who uses the product of the Provider of product.
Owner – A natural person who:
advantage of his influence, exercises control over a transaction, operation or
another person and in whose interests or favor or on whose account a
transaction or operation is performed taking advantage of his influence, makes
a transaction, act, action, operation or step or otherwise exercises control
over a transaction, act, action, operation or step or over another person and
in whose interests or favor or on whose account a transaction or act, action,
operation or step is mad
owns or controls a legal person through direct or indirect ownership of a
sufficient percentage of the shares or voting rights or ownership interest in
that person, including through bearer shareholdings, or through control via
other m Direct ownership is a manner of exercising control whereby a natural
person holds a shareholding of 25 per cent plus one share or an ownership
interest of more than 25 per cent in a company. Indirect ownership is a manner
of exercising control whereby a company which is under the control of a natural
person holds or multiple companies which are under the control of the same
natural person hold a shareholding of 25 per cent plus one share or an
ownership interest of more than 25 per cent in a company.
iii. Holds the
position of a senior managing official, if, after all possible means of
identification have been exhausted, the person specified in clause ii cannot be
identified and there is no doubt that such person exists or where there are
doubts as to whether the identified person is a beneficial owner.
iv. In the case
of a trust, civil law partnership, community or legal arrangement, the
beneficial owner is the natural person who ultimately controls the association
via direct or indirect ownership or otherwise and is such association's:
settlor or person who has handed over property to the asset pool, trustee or
manager or possessor of the property, person ensuring and controlling the
preservation of property, where such person has been appointed, or the
beneficiary, or where the beneficiary or beneficiaries have yet to be
determined, the class of persons in whose main interest such association is set
up or operates.
Exposed Person or PEP – is a natural person who is or who has been entrusted
with prominent public functions including a head of state, head of government,
minister and deputy or assistant minister; a member of parliament or of a
similar legislative body, a member of a governing body of a political party, a
member of a supreme court, a member of a court of auditors or of the board of a
central bank; an ambassador, a high-ranking officer in the armed forces; a
member of an administrative, management or supervisory body of a state-owned
enterprise; a director, deputy director and member of the board or equivalent
function of an international organization, except middle-ranking or more junior
2.9.1. A family
member of a person performing prominent public functions is the spouse, or a
person considered to be equivalent to a spouse, of a politically exposed
person; a child and their spouse, or a person considered to be equivalent to a
spouse, of a politically exposed person; a parent of a politically exposed
2.9.2. A close
associate of a person performing prominent public functions is a natural person
who is known to be the beneficial owner or to have joint beneficial ownership
of a legal person or a legal arrangement, or any other close business
relations, with a politically exposed person; and a natural person who has sole
beneficial ownership of a legal entity or legal arrangement which is known to
have been set up for the de facto benefit of a politically exposed person.
of product – Metro Avrasya Investment Georgia JSC, Tax Identification Number:
404392359, address: Georgia, City Batumi, Gogoli Street N1.
currency – A value represented in digital form, which is digitally
transferable, preservable or tradable and which persons accept as a payment
instrument; a type of unregulated, digital money, which is issued and usually
controlled by its developers, and used and accepted among the members of a
specific virtual community.
3.1. The Chief
Executive Officer shall appoint a CO whose principal tasks are to:
the compliance of the Policy with the relevant laws and compliance of the
activity of the Representatives with the procedures established by the Policy;
compile and keep updated the data regarding countries with low tax risk, high
and low risk of Money Laundering and Terrorist Financing and economic
activities with great exposure to Money Laundering and Terrorist Financing;
out training, instruct and update the Representatives on matters pertaining to
procedures for prevention of Money Laundering and Terrorist Financing;
to Chief Executive Officer once a year (or more frequently, if necessary) on
compliance with the Policy, and on Transactions with a suspicion of Money
Laundering or Terrorist Financing;
collect, process and analyze the data received from the Representatives or
Clients concerning suspicious and unusual activities;
on events of suspected Money Laundering or Terrorist Financing, and respond to
enquiries of such to the corresponding authorities of Georgia;
proposals on remedying any deficiencies identified in the course of checks.
of Due Diligence Measures
Provider of the product shall determine and take due diligence (hereinafter DD)
measures using the results of a conducted risk assessment.
Representatives shall pay special attention to the activities of Clients
participating in a Transaction and to circumstances that refer to Money
Laundering or Terrorist Financing, including to complex, high-value, or unusual
Transactions which do not have any reasonable economic purpose.
Depending on the level of the risk of the Client and/or Transaction and
depending on the fact whether the Business Relationship is an existing one or
it is about to be established, the Provider of product shall apply either
normal DD measures (see Section 5), simplified DD measures (see Section 8) or
enhanced DD measures (see Section 9). The Provider of product shall also apply
continuous DD measures to ensure ongoing monitoring of Business Relationships.
measures shall include the following procedures:
the Client and verifying its identity using reliable, independent
sources, documents or data, including e-identifying;
Identifying and verifying of the representative of the Client
and the right of representation;
the Client's Beneficial Owner;
and, as appropriate, obtaining information on the purpose of the Business
Relationship and the Transaction;
ongoing DD on the Client's business to ensure the Transactions being carried
out are consistent with the Provider of product’s knowledge of the Client and
its source of funds;
information whether the Client is a PEP or PEP’s family member or PEP’s close
Provider of product shall establish the source of wealth of the Client, where
comply with the DD obligation, the Representatives shall have the right and
appropriate identity documents to identify the Client and its representatives;
documents and information regarding the activities of the Client and legal
origin of funds;
information about Beneficial Owners of a legal person;
iv. screen the
risk profile of the Client/Transaction, select the appropriate DD measures,
assess the risk whether the Client or another person linked with the
Transaction is or may become involved in Money Laundering or Terrorist
the Client or the representative of the Client, if there are any doubts
regarding the correctness of the information received in the course of initial
vi. refuse to
participate in or carry out the Transaction if there is any suspicion that the
Transaction is linked with Money Laundering or Terrorist Financing, or that the
Client or another person linked with the Transaction is or could be involved in
Money Laundering or Terrorist Financing.
goal of continuously applied DD measures is to ensure on-going monitoring of
Clients and Transactions. Conducting ongoing monitoring of the Business
i. scrutiny of
Transactions being carried out to ensure that the Transactions being conducted
are consistent with the Provider of product's knowledge of the Client, the
business and risk profile of the Client;
ii. obtaining information
on source of funds for Transactions;
up-to-date the documents, data or information, obtained during taking
particular attention to Transactions and Client’s conduction, leading to
criminal activity or Money Laundering or Terrorist Financing, and clarifying
nature, reasons and background of Transactions;
particular attention to the Business Relationship or Transactions, if the
Client is from or the seat of a Client being a legal person is located in a
third country, which is included in the list of risk countries.
Annual review of a Client's legal entity status is carried out regularly once a
year. Updated data shall be recorded in the Provider of product’s Client database.
Representative updates the data of a Client, who is either a legal person or a
natural person, i.e. takes appropriate DD measures every time when:
i. the Client
addresses the Provider of product with the request to amend a long-term contract
during the term of its validity;
identification and verification of the information there is reason to suspect
that the documents or data gathered earlier are insufficient, have changed or
are incorrect. In this case, the Representative may conduct a face-to-face
meeting with the Client;
iii. the data
pertaining to the Transactions of Client reveal significant changes in the
Client’s area of activity or business volumes, which warrants amending the
Client’s risk profile;
iv. the Provider
of product has learned through third persons or the media that the activities
or data of the Client have changed significantly.
Representative shall evaluate the substance and the purpose of the Client’s
activities, in order to establish the possible links of the respective
Transaction with Money Laundering or Terrorist Financing. The evaluation should
result in an understanding about the purpose of the Business Relationship for
the Client, the nature of the Client’s business, the risk levels of the Client
and, if necessary, the sources of funds related to Transactions.
5. Normal Due
Provider of the product shall conduct normal DD in the following cases:
establishing a new Business Relationship;
ii. if the value
of single Transaction exceeds 30,000 GEL, regardless of whether the financial
obligation is performed in one payment or a series of related payments;
iii. in the
event of insufficiency or suspected incorrectness of the documents or
information previously gathered in the course of carrying out DD measures;
suspicion of Money Laundering or Terrorist Financing.
5.2. In the
course of conducting normal DD measures, the Representative shall apply the
measures of DD as provided for in section 4.4.
5.3. No new
Business Relationship can be formed, or Transaction executed, if the Client, in
spite of the respective request, has failed to present documents and
appropriate information required to conduct DD, or if based on the presented
documents, the Representative suspects Money Laundering or Terrorist Financing.
5.4. If, in
spite of the respective request, an existing Client has failed to present
documents and appropriate information required to conduct DD during the
contract period, such behavior constitutes material break of contract that
shall be reported by the Representative to the CO, and in such case the
contract(s) concluded with the Client shall be cancelled and the Business
Relationship shall be terminated as soon as feasible.
Provider of product shall not enter into Business Relationships with anonymous
Identification of a Person
implementing DD measures the following persons shall be identified:
Client – an individual or legal entity;
Representative of the Client – an individual who is authorized to act on behalf
of the Client;
Beneficial Owner of the Client;
Politically Exposed Person (PEP) – if the PEP is the Client or a person
connected with the Client.
Identification of a Client who is an individual or representative of a Client
who is a legal entity
identity of a Client who is an individual or the representative of a Client who
is a legal entity must be established each time a Transaction is carried out.
This Policy must be considered when dealing with documents that can be used to
identify the Client or its representative and the requirements established for
Verification must be done whether or not such person is a PEP.
new Client and, if necessary, an existing Client shall confirm the correctness
of the submitted information and data by signing the Client data registration
Identification of a Legal Entity Client
identify a Client who is a legal entity, the Representative shall take the
the information concerning the legal entity by accessing the relevant
ii. If it
is not possible to obtain an original extract from the company registry or the
respective data, request documents (extracts from the relevant registry,
certificate of registration, or equivalent document) certified or authenticated
by a notary public or authenticated officially for verification of the identity
of the legal entity;
the representative of a foreign legal entity to present identity documents and
a document evidencing of his/her power of attorney, which has been notarized or
authenticated pursuant to an equal procedure and legalized or authenticated by
a certificate substituting for legalization (apostille), unless otherwise
prescribed by an international agreement;
iv. On the
basis of the information received from the representative of the foreign legal
entity, determine whether or not the legal entity could be linked with a PEP;
v. If the
legal address of a Client who is a legal entity is in a third country that is
included in the list of risk countries, report this to the CO, who shall decide
the additional measures to be applied to identifying and background checking
Identification of the Beneficial Owner of the Client
Registration and assessment of the Beneficial Owner(s) of a legal entity is
There is no need to identify the Beneficial Owners of a Client or company whose
securities have been accepted for trading on a regulated securities market.
order to establish the Beneficial Owner, the Representative shall take the
information about the ownership and control structure of the Client on the
basis of information and documents provided in pre-contractual negotiations or
obtained from another reliable and independent source;
situations where no single person holds the interest or ascertained level of
control to the extent of no less than 25 percent, apply the principle of
proportionality to establishing the circle of beneficiaries, which means asking
information about persons, who control the operations of the legal person, or
otherwise exercise dominant influence over the same;
the documents used to identify a legal person, or other submitted documents do
not clearly identify the Beneficial Owners, record the respective information
(i.e., whether the legal person is a part of a group, and the identifiable
ownership and management structure of the group) on the basis of the statements
made by the representative of the legal person, or a written document under the
hand of the representative;
verify the presented information, make enquiries to the respective registries,
and request an annual report or another appropriate document to be presented.
v. If no
individual is identifiable who ultimately owns or exerts control over a Client
and all other means of identification are exhausted, the senior managing
official(s) may be considered to be the Beneficial Owner(s).
attention to companies established in high risk regions.
Identification of a Politically Exposed Person
Representative shall implement the following measures to establish whether or
not a person is a PEP:
the Client to provide necessary information;
an enquiry or checking the data on websites of the respective supervisory
authorities or institutions of the country of location of the Client.
matter of whether to establish a Business Relationships with a PEP, or a person
associated with him or her, and the DD measures applied to such person shall be
decided by the CEO.
a Business Relationship has been established with a Client, and the Client or
its Beneficial Owner subsequently turns out to be or becomes a PEP, CO and CEO
shall be notified of that.
order to establish a Business Relationship with a PEP or a company connected
with that person, it is necessary to:
enhanced DD measures (Section 10);
the source of wealth of this person and the origin of the money or other
property used in the Transaction;
monitor the Business Relationship on a continual basis, and carry out enhanced
control over the Transaction.
measures, mentioned in Section 6.5.4 might be not applicable regarding local
PEPs if there are no relevant circumstances leading to the higher risks.
Respective remark must be made in the Provider of product’s database of Clients
on documents of such person in the form of notation “Politically Exposed
Documents that can be used for identification
Clients who are individuals and the representatives of Clients, the following
documents can be used for identification:
i. if the
individual is a Georgian Citizen – a citizen identity card, or a citizen
passport, or any other official document which contains the relevant
information and is equivalent to identification under Georgian legislation;
ii. if the
individual is a Foreign Citizen – a passport issued by the competent authority
of the relevant State or other official document containing relevant data
equivalent to the passport under Georgian legislation;
Representative shall make a copy of the identity page of the document that
contains the personal data and a photo.
addition to an identity document, the representative of a Client shall submit a
document in the required format certifying the right of representation.
legal entity and its passive legal capacity shall be identified and verified on
the basis of the following documents:
legal entities registered in Georgia and branches of foreign companies
registered in Georgia, the identification shall be conducted on the basis of an
extract of a registry card from the commercial register;
foreign legal entities shall be identified on the basis of an extract from the
relevant register or a transcript of the registration certificate, or an
equivalent document that has been issued by a competent authority or body not
earlier that six months before submission thereof.
original documents are not used for identification, the Representative shall
control and verify data by using at least two reliable and independent sources.
The Provider of
the product, in line with international requirements, has adopted a risk-based
approach to combating money laundering and terrorist financing. By adopting a
risk-based approach, Provider of product is able to ensure that measures to
prevent or mitigate money laundering and terrorist financing are commensurate
with the identified risks. This will allow resources to be allocated in the
most efficient ways. The guiding principle is that resources should be directed
in accordance with priorities so that the greatest risks receive the highest
8. Reporting of
Notification of the CO
8.1.1. If there
are any circumstances identified in the Business Relationship that are unusual
or suspicious, or there are characteristics that point to Money Laundering,
Terrorist Financing, or an attempt of the same, the Representative shall
promptly notify the CO.
8.1.2. The CO
shall analyze and forward the respective information to the Chief Executive
Notification of official state authorities
8.2.1. The CO is
authorized to decide whether the transaction is suspicious and, respectively,
to forward the information to the respective official state authorities (FIU)
and the Chief Executive Officer shall decide whether to postpone the
Transaction and/or terminate the Business Relationship.
8.2.2. The CO
shall store in a format reproducible in writing any reports received from the Representatives
about suspicious and unusual Transactions, as well as all information gathered
to analyze such notices, as well as other linked documents and notices to be
reported, along with the time of forwarding the notice, and the information
about the Representatives who forwarded the same.
Client or the person participating in the Transaction (including their
representative and other connected persons) who is reported as being
suspicious, may not be informed of the same.