Georgian Prosecutor’s Office uncovers transnational money laundering scheme

The Prosecutor’s Office of Georgia has solved a criminal case concerning transnational money laundering. Criminal prosecution has commenced against a foreign national and a legal entity.

In a statement, the Office announced that an investigation carried out by the specialised unit of the Prosecutor’s Office had revealed that in 2022, individuals linked to the defendant contacted a company operating in Spain on behalf of its contractor. Using a fraudulent email address resembling the company’s, they sent a fake invoice, which led the company to mistakenly transfer €545,784 to a foreign bank account registered under a non-resident enterprise.

“The illegally obtained funds were then laundered. To conceal their origin, the money was divided and transferred from the non-resident enterprise’s accounts to various countries, reaching bank accounts controlled by members of the criminal group. Part of the funds - €184,353 - was wired to the bank account of a Georgian company founded and managed by the defendant, using fake invoices and contracts”, the statement noted.

The funds accumulated in the Georgian company’s account were converted into US dollars and subsequently transferred abroad to accounts linked to the defendant, again under cover of falsified documentation.

The foreign citizen has been charged in absentia with group participation in large-scale legalisation of illicit income, an offense punishable by nine to twelve years of imprisonment. The charges against the legal entity carry penalties of liquidation, revocation of operating rights, or fines.

The Prosecutor’s Office will appeal to the court within the legal timeframe to impose pre-trial detention as a preventive measure.

The investigation and international cooperation continue to identify other members of the criminal group, as well as additional individuals and companies engaged in similar activities.