NBG: OFAC-Sanctioned Entity Is Not Regulated by Georgia’s Central Bank

The entity sanctioned by the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) is not regulated by the National Bank of Georgia (NBG), the central bank said in a statement.

The NBG said virtual asset service providers (VASPs) operating in Georgia are subject to strict regulation and are required by law to register with the central bank.

“We emphasize that SHPS SHELBIT, an entity sanctioned by the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC), has never applied to the National Bank of Georgia for registration as a virtual asset service provider and, therefore, is not an entity regulated by the NBG,” the statement said.

According to Georgia’s business registry, the company’s registration has also been revoked.

The central bank said its regulatory framework imposes strict market-entry and operational requirements, serving as an important safeguard against entities potentially linked to illicit activities.

The NBG also said Georgia’s regulatory framework for virtual asset service providers is aligned with standards set by the Financial Action Task Force (FATF) and international best practices.

It cited a 2024 assessment by the Council of Europe’s Moneyval committee, which rated Georgia as “largely compliant” with FATF Recommendation 15, covering new technologies and the regulation of virtual asset service providers. The NBG noted that countries including the United Kingdom and France have received the same rating under the recommendation.

The statement follows a decision by the United States to impose sanctions on a Georgia-based company.