Georgian Prosecutor’s Office uncovers money laundering scheme worth $624 million and €35 million

The Prosecutor’s Office of Georgia, in cooperation with the State Security Service, has uncovered an unprecedented case of money laundering carried out between 2022 and 2024, involving approximately $624 million and €35 million in illicit funds. One individual has been arrested on charges of money laundering.

According to the investigation, the accused operated under the cover of a currency exchange business licensed by the National Bank of Georgia. In deliberate violation of the country’s Law on Facilitating the Prevention of Money Laundering and Terrorism Financing, the individual organized an illegal network that collected large amounts of unverified funds, altered their form through conversion, and injected them into the legal economy.

“The accused organised an illegal network for collecting funds of unsubstantiated origin, altering their origin through conversion, and placing them into legal circulation”, the Prosecutor's Office said.

“Members of the criminal group, in prior agreement with the detainee, systematically facilitated the smuggling of large amounts of foreign currency of unsubstantiated origin from neighbouring countries, bypassing customs procedures using specially designed hiding places in vehicles, and delivering the funds to the currency exchange point”, the statement noted.

Investigators claimed that the individual organised an extensive network that collected illicit funds, altered their origin, and integrated them into the legitimate financial system.

The accused subsequently deposited these funds into commercial banks, disguising them as legitimate revenues from foreign exchange activities and presenting falsified documentation regarding their origin. After conversion, the laundered money was transferred to third parties, reinvested, and used to purchase movable and immovable assets, thus re-entering the legal economy.

In total, the scheme laundered around $624 million and €35 million over the two-year period. Large amounts of cash have already been seized during investigative actions. The Prosecutor’s Office announced that legal measures will be taken to confiscate illicit funds and other assets in favour of the state.

The prosecution will request pre-trial detention for the accused within the legally established timeframe. The charges carry a penalty of up to 12 years of imprisonment.