Elements of money laundering and other illegal activities have been revealed in the activity of TBC Bank, one of the major Georgian banks which has a credit organization in Azerbaijan, prosecutor Salome Chikobava said at a briefing in Georgian prosecutor’s office.
She said that the Financial Monitoring Service in May 2018 began to study the activities of financial and legal entities of TBC Bank and individual shareholders: “The service came to the conclusion that this activity contains elements of the legalization of illegal income, money laundering and other illegal actions.”
The materials were submitted for consideration to the National Bank and the Prosecutor’s Office of Georgia. The National Bank, within the framework of its authority, investigated the issue and responded accordingly to violations of the law.
The Prosecutor General’s Office launched a criminal case into the fact of the legalization of illegal income on August 2, 2018.
TBC Bank states that the documents confiscated by the Prosecutor General’s Office from a bank are related to legal banking operations performed in 2018.
The National Bank of Georgia has already fined TBC Bank GEL 1 million ($ 375,234). It is not yet known whether other sanctions will be applied to the bank.
The bank also operates in the financial market of Azerbaijan. Thus, the non-bank credit organization LLC “TBC Kredit” is a 100% subsidiary of this bank. TBC Kredit and Nikoil Bank OJSC have recently signed a merger agreement.