The Parliament of Georgia has approved amendments to the country’s Law on Grants in a third and final reading, introducing tighter regulations on foreign-funded activities and establishing criminal liability for violations. The legislative package passed with 78 members of parliament voting in favor and 9 against.
One of the main changes significantly expands the definition of a ‘grant.’ Under the revised law, any financial resources that could be used to influence the Georgian government, state institutions or society will be classified as a grant.
Such funding will now require prior approval from the government before it can be received.
The new rules also apply to:
- Technical assistance provided by foreign experts, and
- Funding allocated to branches of foreign organizations operating in Georgia.
Both will require formal government consent before being accepted.
The amendments introduce strict penalties for violations of the grant legislation.
Under the new framework:
- Violations of the grant law may result in fines or prison sentences of up to six years.
- Money laundering for political purposes may carry 9–12 years of imprisonment.
- Foreign lobbying financed for political purposes could lead to up to six years in prison.
The changes also introduce new restrictions affecting political parties.
Individuals employed by organizations that receive more than 20% of their funding from foreign sources will be barred from party membership for eight years, as the adopted amendments state.
The law also regulates the political activities of business entities. Companies will be prohibited from engaging in public political activities unrelated to their core business operations.
Violations will carry significant penalties:
- First offense: a fine of 20,000 GEL
- Repeated violations: potential criminal liability
Supporters of the amendments within the ruling party say the changes are necessary to protect Georgia from foreign interference and ensure transparency in political financing.
However, representatives of the opposition and several civil society groups have warned that the new rules could restrict the work of independent organizations and limit critical voices in the country.
