NBG clarifies: Three virtual asset entities targeted in EU 21st sanctions package are not regulated by the Bank

“Three of the fourteen virtual asset entities targeted under the European Union’s 21st package of sanctions against Russia, namely LLC Aifory, LLC Abcex, and LLC Rapira Group, are incorporated in Georgia; however, none of these companies falls under the regulatory purview of the National Bank of Georgia (NBG),” the central bank announced in an official statement.

According to the NBG, enquiries conducted by relevant investigative agencies revealed that none of the sanctioned firms operated within the domestic Georgian market.

“Based on the information available to us, following an enquiry conducted by the relevant investigative authority into these companies, none of the sanctioned firms carried out operations within Georgia,” the NBG statement read.

The National Bank further said that additional investigative proceedings have been initiated against them.

“We would like to point out that the regulatory framework of the National Bank of Georgia imposes stringent market entry and operational requirements, serving as a vital filter against entities associated with unlawful activity.

Moreover, the regulatory framework for Virtual Asset Service Providers (VASPs) established by the NBG fully aligns with Financial Action Task Force (FATF) standards and international best practice. This was confirmed in the 2024 evaluation report by MONEYVAL (the Council of Europe’s Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism).

According to the assessment, Georgia achieved a rating of ‘Largely Compliant’ regarding Recommendation 15—which addresses compliance with new technologies and the regulation of VASPs. A comparable rating for this recommendation is held by countries such as the United Kingdom and France,” the National Bank said in a statement.

The Council of the European Union recently adopted its 21st sanctions package, specifying that “the EU has imposed sanctions on a Kyrgyz bank linked to Russia’s financial messaging system, alongside three other foreign banks involved in sanctions evasion. The EU is also extending transaction bans to 14 cryptocurrency-related platforms based in Georgia, Panama, the United Arab Emirates, the Marshall Islands, Kyrgyzstan, and Belarus.”

The package specifies a six-month transition period before the transaction bans come into effect.