Former National Bank President Warns Georgian Banks Over U.S. Sanctions
By Messenger Staff
Tuesday, September 17, 2024
A member of parliament and former president of the National Bank of Georgia, Roman Gotsiridze, has responded to the U.S. decision to impose financial sanctions on several Georgian individuals. Gotsiridze warned that Georgian banks serving these sanctioned individuals could face international sanctions themselves starting tomorrow, potentially leading to the isolation of the entire Georgian banking system.
Gotsiridze emphasized the need for immediate enforcement of the sanctions by commercial banks to avoid dire consequences for the country's financial sector. "If banks fail to enforce these sanctions promptly, Georgia's entire banking system could be internationally isolated, which would be tantamount to financial collapse," Gotsiridze stated.
The U.S. Department of the Treasury recently sanctioned four individuals, including senior officials from the Ministry of Internal Affairs and members of the far-right media platform Alt-Info, for their involvement in human rights abuses and undermining democratic processes. These sanctions, according to Gotsiridze, are not visa-related but financial, similar to those imposed on former Prosecutor General Otar Partskhaladze.
He noted that the National Bank of Georgia had previously issued a ruling in Partskhaladze's case, stating that sanctions against Georgian citizens would only be enforced following a Georgian court decision. However, Gotsiridze highlighted that the current situation places Georgian banks in a difficult position: whether to follow the National Bank's ruling or comply with international sanctions.
"Starting today, Georgian banks face a dilemma-whether to comply with the National Bank's ruling or follow international sanctions," Gotsiridze added. He urged immediate action to avoid potential financial isolation.
The U.S. State Department recently sanctioned more than 60 members of the Georgian government and parliament, including their family members, for "undermining democracy." The U.S. Treasury also sanctioned Ministry of Internal Affairs officials Zviad Kharazishvili and his deputy Mileri Lagazauri, as well as Alt-Info members Zurab Makharadze and Konstantine Morgoshia.
