The National Bank of Georgia (NBG) has imposed a GEL 465,000 fine on ‘Sher888 LLC’, a virtual asset service provider, following a supervisory inspection that revealed multiple breaches of anti–money laundering (AML) and counter-terrorism financing (CTF) regulations.
‘Sher888’ obtained its virtual asset service provider license in May 2024 and is co-owned equally by Gia and Igor Ashkashidze. The company’s main business involves converting cryptocurrency into cash.
The NBG stated that the inspection uncovered serious regulatory lapses across several areas of compliance. The company was fined GEL 6,000 for submitting inaccurate or incomplete information and documentation during the supervisory process and an additional GEL 5,000 for malfunctioning video surveillance systems.
Violations of Georgia’s ‘Law on Facilitating the Prevention of Money Laundering and Terrorism Financing’ resulted in another GEL 3,000 penalty. Inspectors also found that ‘Sher888’ failed to determine the purpose and nature of customer relationships, leading to a GEL 78,000 fine.
The company was further penalized GEL 4,000 for improper client identification and verification procedures while insufficient monitoring and failure to investigate the origins of financial transactions added GEL 80,000 to the total.
The NBG also identified major flaws in the software system used to implement sanctions compliance, resulting in a GEL 15,000 fine. The largest single penalty, GEL 264,000, was issued for improper recordkeeping and documentation related to 528 separate transactions. Additionally, ‘Sher888’ obstructed the regulator’s inspection by providing misleading and incomplete information, prompting a further GEL 10,000 fine.
In total, the financial sanctions against ‘Sher888’ amount to GEL 465,000. The National Bank reiterated its commitment to strict oversight of the virtual asset sector, emphasizing that transparency and adherence to AML/CTF requirements are essential to maintaining the integrity of Georgia’s financial system.
