Georgia's Prosecutor's Office launches investigation into National Bank Council member
Georgia national bank member in corruption probe
Georgia’s Prosecutor’s Office has launched an investigation into the possible unlawful involvement of Nana Keinishvili, a member of the National Bank of Georgia’s Council, in business activities.
According to the Prosecutor’s Office, its investigative department launched a probe under Article 337 of the Criminal Code, which criminalises the unlawful involvement of a public official or an equivalent person in business activities. The investigation follows complaints by the management of Bitexchange LLC, which were forwarded by the National Bank.
According to an investigation by Radio Free Europe/Radio Liberty, the National Bank fined cryptocurrency company Bitexchange, in which Keinishvili had unsuccessfully sought a stake, in what could be seen as an act of retaliation.
The National Bank said that, in order to protect the institution’s reputation, its Council would consider at its next meeting temporarily suspending Keinishvili’s participation in Council meetings while the investigation is under way, until the circumstances of the case are fully clarified.
Nana Keinishvili was elected to the National Bank’s Council in September 2023. From 2012 to 2016, she served as a member of parliament representing the ruling Georgian Dream party and as deputy chair of the parliamentary Finance and Budget Committee.
Parliament Speaker Shalva Papuashvili said former president Salome Zourabichvili should be asked how she selected Nana Keinishvili as a candidate for the National Bank of Georgia’s Council.
“This once again shows how important it is for parliament to also familiarise itself with these matters and, in this case, examine in detail the issues surrounding the election of Council members. Salome Zourabichvili herself should answer the remaining questions. What matters is that the state is responding to this issue,” Papuashvili said.
He added, however, that he could not go into the details of the investigation.
It has emerged, however, that the parliament speaker, like current Prime Minister Irakli Kobakhidze, voted in parliament in favour of appointing Nana Keinishvili to the National Bank of Georgia’s Council.
Details of the case
According to the National Bank, it reviewed submissions from the management of Bitexchange LLC and conducted a preliminary internal investigation within the scope of its authority.
The materials were forwarded to the relevant authorities for legal assessment, as the matter falls outside the mandate established for the National Bank by law. The bank expressed hope that the facts of the case would be established objectively as soon as possible.
The bank also explained that Bitexchange, a virtual asset service provider, had been fined following a routine inspection for violating anti-money laundering and counter-terrorist financing regulations.
According to the Prosecutor’s Office, the management of Bitexchange claims that Keinishvili is involved in business activities and directly controls a network of companies subject to regulation by the National Bank.
They allege that shares in these companies are registered in the names of her family members and affiliated individuals. The company’s management also claims that Keinishvili attempted to acquire a stake in their business.
The Prosecutor’s Office notes that Georgia’s Law on the Fight Against Corruption prohibits public officials from engaging in business activities. Furthermore, under the Organic Law on the National Bank of Georgia, members of the National Bank’s Council and their family members are prohibited from being partners in a Georgian financial sector entity or a legal entity affiliated with one.
According to the Prosecutor’s Office, the investigation will examine the circumstances surrounding Nana Keinishvili’s possible unlawful involvement in business activities. The public will be informed of the results of the investigation in due course.
Radio Free Europe/Radio Liberty investigation
The National Bank has not disclosed the amount of the fine. However, according to the investigation by Radio Free Europe/Radio Liberty, Nana Keinishvili demanded a stake in a cryptocurrency company regulated by the National Bank. The company’s owner refused to give up a share, after which the National Bank fined the company 572 million lari (approximately $211.85 million).
The investigation also found that Keinishvili and her family members own and manage profitable businesses regulated by the National Bank.
Radio Free Europe/Radio Liberty obtained documents indicating that the National Bank and the State Security Service had been aware of information about Keinishvili’s alleged violations for at least several months. Radio Free Europe/Radio Liberty sent inquiries to both agencies on 6 October.
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