Prosecutor’s Office uncovers transnational money laundering operation

The Prosecutor’s Office of Georgia has uncovered a transnational money laundering crime.

According to the Prosecutor’s Office, criminal proceedings have been initiated against a foreign national and a legal entity.

“An investigation conducted by the Prosecutor’s Office’s specialised unit established that in 2022, individuals acting in criminal association with the accused contacted a company operating in the Kingdom of Spain, posing as a contractor company. Using a fraudulent email address resembling a genuine one, they sent a falsified invoice and fraudulently caused the company to transfer payment for work performed, totalling EUR 545,784, to a foreign bank account belonging to a non-resident enterprise.

Subsequently, for money laundering, the illegally obtained funds were transferred in instalments from the non-resident enterprise’s bank accounts to bank accounts in various countries controlled by members of the criminal group. This included a portion of the illicitly acquired funds, EUR 184,353, which was transferred to a bank account in Georgia belonging to an enterprise established and managed by the accused, based on false invoices and contracts.

The funds accumulated in the Georgian company’s bank account were converted into US dollars and transferred abroad to bank accounts of individuals associated with the accused, based on falsified documentation.

The foreign national has been charged in absentia with money laundering of an especially large amount committed as part of a group, which carries a sentence of 9 to 12 years’ imprisonment. Acts committed through a legal entity are punishable by liquidation or deprivation of the right to operate, along with a fine.

The Prosecutor’s Office will petition the court within the statutory timeframe for a remand in custody as a preventive measure for the accused.

The Prosecutor General’s Office of Georgia is continuing the investigation and international cooperation to identify members of the criminal group, as well as other natural or legal persons engaged in similar activity,” the Prosecutor’s Office statement reads.