Follow authority, knowledge and the transaction—not titles
Movement through several accounts or use of cash or crypto does not alone prove laundering; criminal origin, knowledge and laundering conduct require proof.
What property is alleged to be criminal proceeds, how is origin established and what did each participant know or intend?
A flow-of-funds chart may show movement without proving beneficial ownership, criminal origin or what each participant knew.
Records that test the prosecution theory
Predicate-offence material, account and wallet tracing, KYC, source-of-funds records, contracts, messages and ownership structure.
- AuthorityMap signatures, delegations, approvals and system access.
- EconomicsReconcile contracts, performance, accounting treatment and actual benefit.
- KnowledgeSeparate each person's information and decisions at the relevant time.
- Proceeds and restraintTest tracing, ownership, valuation and third-party interests.
Articles that may enter the qualification
These provisions are orientation points, not a conclusion. An investigation may start under one article and later be narrowed, expanded or reclassified as facts, expert results, article parts, aggravating circumstances and procedural decisions develop.
Legalisation of illegal income (money laundering)
The prosecution must connect property to alleged criminal origin and prove the accused person's conduct and required knowledge or purpose.
Read full Article 194 text on this pageProperty knowingly obtained by criminal means
Knowledge of the property's alleged criminal origin and the accused person's actual transaction or control are central.
Read full Article 186 text on this pageRead the relevant provisions before the external source
The operative English text below is reproduced from the official consolidated Criminal Code of Georgia, publication 296, accessed 9 August 2026. Formatting has been normalised for on-screen reading; the current Georgian-language consolidated text controls if wording or timing differs.
Article 194Legalisation of illegal income (money laundering)+
1. Legalisation of illegal income, i.e. giving legal form to illicit and/or undocumented property (use, purchase, possession, conversion, transfer or other actions in connection with property) in order to conceal its illegal and/or undocumented origin or to assist another person in evading liability, as well as concealment or disguising of its genuine nature, source of origin, location, dislocation, movement, its title and/or of other rights related to it, –
shall be punished by a fine or by imprisonment for a term of three to six years.
2. The same act:
a) committed jointly by more than one person;
b) committed repeatedly;
c) which was accompanied by receipt of large income, –
shall be punished by imprisonment for a term of six to nine years.
3. The same act:
a) committed by an organised group;
b) committed using one’s official position;
c) accompanied by receipt of particularly large income;
d) committed in order to perform an act related to a political issue concerning Georgia, –
shall be punished by imprisonment for a term of nine to twelve years.
Note:
1. For the purposes of this article, property, as well as income, or shares (interest) gained from this property shall be considered illicit if acquired unlawfully by the person, the person’s family member, close relative or related person.
2. For the purposes of this article, property, as well as income, or shares (interest) gained from this property shall be considered undocumented if the person, the person’s family member, close relative or related person does not have the documents that confirm that it has been acquired by legal means or if it has been obtained by the monetary resources gained from the alienation of the illicit property.
3. Under this article, large income shall mean income from GEL 30 000 to GEL 50 000, and particularly large income shall mean income exceeding GEL 50 000.
4. For the act provided for by this article, a legal person shall be punished by liquidation or by deprivation of the right to carry out activities and a fine.
5. For the purposes of this article, any such activity conducted or to be conducted with the aim of exercising any influence over the Government of Georgia, state institutions or any part of the society, which intends for the development, pursuing or changing of the internal or foreign policy of Georgia, and any such activity stemming from the political or public interests, approaches or relations of a foreign Government or foreign political party shall be considered an act related to a political issue concerning Georgia.
Open Article 194 in the official consolidated Criminal Code↗︎Article 186Purchase or sale of property obtained knowingly by illegal means+
1. The use, purchase or sale of property obtained knowingly by illegal means, – shall be punished by a fine or community service from 180 to 200 hours or by corrective labour for up to one year or house arrest for a term of six months to two years or by imprisonment for up to two years.
2. The same act committed:
a) by a group of persons with the preliminary agreement;
b) repeatedly;
c) against a motor car;
d) in large quantities;
e) by a person who has two or more previous convictions for unlawful appropriation or extortion of another person’s movable property, –
shall be punished by a fine or by imprisonment for a term of two to five years.
3. The act provided for by paragraph 1 or 2 of this article which has been committed:
a) by an organised group;
b) using the official position, –
shall be punished by imprisonment for a term of four to seven years.
Note: For the act provided for by this article, a legal person shall be punished by liquidation or by deprivation of the right to carry out activities and a fine.
Open Article 186 in the official consolidated Criminal Code↗︎How counsel turns the issue into a case plan
For money laundering, counsel can identify the operative procedure and decision-maker, test the prosecution theory against each legal element, obtain lawful defence material, frame expert or disclosure requests, preserve objections and prepare the next motion, hearing or cross-border step. Advice must be based on the actual record rather than the page title alone.
Test the predicate allegation and attribution before accepting a suspicious-flow diagram as proof.
Questions clients ask about money laundering
Does Article 194 — Legalisation of illegal income (money laundering) — automatically apply to Money Laundering?+
For Money Laundering, Article 194, Article 186 may provide a starting point, but a page title is not a legal qualification. Investigators and prosecutors must match proved facts to every element, part and aggravating circumstance. The qualification may be narrowed, expanded or changed after expert results, new evidence, a defence motion, prosecutorial review or a court decision. The prosecution must connect property to alleged criminal origin and prove the accused person's conduct and required knowledge or purpose.
Which factual boundary is decisive in a Money Laundering case?+
In a Money Laundering case, the evidence must distinguish criminal deceit or appropriation from commercial failure, accounting error and civil non-performance. That boundary is tested through the person's individual conduct, knowledge or intent, the legally classified consequence and every circumstance relied upon to move the allegation into a different article or aggravated part.
What evidence can prove—or undermine—the allegation of Money Laundering?+
The focused record for Money Laundering is not the same as for every offence. Priority material includes contracts, approvals, ledgers, bank records, tax files, devices and role-specific communications. The defence should test provenance, completeness, authorship, lawful collection, chain of custody and whether each item proves the disputed element rather than merely repeating the accusation.
Can the article or charge for Money Laundering change after the investigation starts?+
Yes. For Money Laundering, Article 194, Article 186 may be a starting map, but expert results, quantity or value, injury classification, individual role, attempt or participation, a defence application, prosecutorial review or a court decision may support a different article, part or legal outcome.
What should be preserved immediately in a Money Laundering matter?+
In a Money Laundering matter, preserve the original chronology, procedural records and the topic-specific material before routine loss or alteration. Early advice is important because a poorly coordinated corporate response can create conflicts, overwrite data or blur individual roles; preservation must be lawful and must not involve hiding, changing or coordinating evidence.
Primary sources for this guide
Legislation can change and official English translations may lag the Georgian text. Check the current consolidated version and obtain advice before relying on a deadline, offence classification or remedy.
Criminal Procedure Code of Georgia↗︎Official consolidated Criminal Code — current text & PDF↗︎Ministry of Finance Investigation Service↗︎