Georgia Uncovers Massive Money Laundering Scheme with Alleged Azerbaijani Connection

Tbilisi – Georgian authorities have announced the discovery of a major money laundering operation that allegedly legalized $624 million and €35 million between 2022 and 2024. The Georgian Prosecutor's Office and State Security Service conducted a joint operation on 16 September, resulting in the arrest of one individual.

According to the official statement from the Prosecutor's Office, the suspect organised an illegal network using a licensed currency exchange bureau he owned. The network allegedly smuggled large amounts of foreign currency from neighbouring countries, bypassing customs procedures using vehicles with secret compartments. These funds were then delivered to the currency exchange point to be laundered.

However, the official account has been met with scepticism. Roman Gotsiridze, the former director of Georgia's National Bank, called the case "absurd" in a social media post. He believes the government was forced to publicise an investigation that had been ongoing for over a year to create an "information fire".

Gotsiridze questioned the feasibility of the laundered amount, stating that it would be difficult for all 717 currency exchange points in Georgia combined to launder nearly $700 million, let alone a single one. He compared the figures to a 2021 study which showed all 469 active exchange points in Georgia collectively bought just $543 million and €135 million over the entire year. He suggested the influx of cash is more likely linked to the arrival of over 120,000 Russian, Ukrainian, and Belarusian citizens since Russia's 2022 invasion, with sanctioned Russian entities using Georgia's financial system.

Gotsiridze specifically highlighted a potential "Azerbaijani trace," questioning why there has been no official reaction from Azerbaijan. "The Russian money was coming from Azerbaijan, wasn't it?! Why is no one reacting there?!" he wrote. He raised questions about the status of the Azerbaijani citizen who allegedly smuggled the cash, asking if they have been arrested and why the Azerbaijani side seems to be ignoring or disbelieving the "amazing figures" voiced by Georgian authorities.