Georgian central bank board member Nana Keinishvili resigns amid investigation into alleged business misconduct

Nana Keinishvili, a member of the National Bank of Georgia’s (NBG) Board, has announced her resignation amid a criminal investigation into allegations of unlawful business activities and potential conflicts of interest, rejecting the accusations against her.

In a statement published on social media, Keinishvili said she had decided to step down to protect the reputation and institutional independence of Georgia’s central bank.

“Over the past few days, information circulated concerning my name has generated considerable public interest and raised numerous questions. I therefore consider it necessary to personally address these developments and explain my position to the public,” she said.

Keinishvili categorically denied allegations that she had exploited her official position to advance private business interests, obtain unlawful advantages for companies or influence the activities of other individuals.

“I categorically reject the allegations that I used my official position to pursue personal business interests, secure unlawful advantages for any company or influence the activities of others,” she said.

She also emphasised that her position on the central bank’s Board was non-executive and did not give her authority over its day-to-day management.

“I respect the institutional independence of the National Bank and its authority. In light of everything stated above, and to ensure that neither the interests of the state nor the reputation of the National Bank are harmed, I am resigning from my position as a member of the National Bank’s Board,” Keinishvili said.

The resignation follows an investigation launched by Georgia’s Prosecutor General’s Office on October 9 into allegations that Keinishvili had unlawfully participated in commercial activities while serving as a senior central bank official.

The investigation, opened under Article 337 of Georgia’s Criminal Code, followed complaints and audio recordings submitted by executives of BitExchange LLC, a company providing virtual asset services regulated by the National Bank.

According to prosecutors, the complainants alleged that Keinishvili controlled a network of businesses subject to central bank regulation, with ownership stakes registered in the names of family members and associated individuals.

They also alleged that she had attempted to acquire a stake in another regulated company to expand her commercial interests.

Georgian legislation restricts public officials from engaging in entrepreneurial activities and prohibits central bank board members and their families from holding certain interests in financial institutions.

On October 9, the National Bank’s Board unanimously decided to exclude Keinishvili from participating in its decision-making process pending the outcome of the investigation.

In a further statement on October 10, the central bank distanced itself from the alleged misconduct and said Keinishvili had acted independently.

The NBG stressed that oversight of virtual asset service providers was not among Keinishvili’s responsibilities and that, as a non-executive board member, she had no authority to influence regulatory decisions concerning BitExchange.

The controversy also involves regulatory action against BitExchange, which the National Bank said had been fined following an inspection that identified violations of anti-money laundering and counter-terrorist financing requirements.

Keinishvili, a former member of parliament representing the ruling Georgian Dream party, joined the National Bank’s Board in September 2023 after being nominated by then-President Salome Zourabichvili.

Her resignation comes as prosecutors continue examining the allegations. No findings establishing criminal wrongdoing have been announced.