Source of Funds Investigations

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.

The consolidated official source is listed in the source section at the end of this guide.

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.

The consolidated official source is listed in the source section at the end of this guide.