“In light of high public interest, we must clarify that reports by various media outlets regarding an alleged special fine imposed on JSC Cartu Bank are entirely speculative and represent a deliberate attempt to mislead the public,” the National Bank of Georgia (NBG) stated on Monday.

The NBG elaborated on its supervisory role, explaining that it regularly conducts thorough inspections of all financial sector entities as part of its mandate. “These inspections are designed to verify commercial banks’ compliance with current legislation and to enhance their internal control mechanisms.” The NBG emphasized its legal obligation to investigate and respond to any regulatory violations.

Following such inspections, the NBG determines appropriate recommendations and necessary actions for financial sector representatives. This oversight framework includes the authority to impose monetary penalties on commercial entities. The NBG highlighted that over the past five years, more than 100 fines have been imposed on banks, with JSC Cartu Bank being subject to the same regulatory approach as other institutions.

Specifically regarding JSC Cartu Bank, the NBG identified several regulatory compliance issues in the implementation and documentation of particular transactions during August-October 2023. The NBG emphasized that these findings emerged from their analytical work and inspections, “not from media reports, contrary to accusations from various parties.”

The regulatory action resulted in both a financial penalty and specific operational directives for the bank. The NBG also directly addressed circulating misinformation, stating: “Claims suggesting that JSC Cartu Bank had never been previously fined are false. As we have consistently maintained, the NBG has implemented various types of penalties across all commercial banks operating in Georgia, including JSC Cartu Bank.”