Agency For Financial Control [Financial Supervision Agency] Starts Operation Since 15 May
FROM THE REDACTION
Agency for Financial Control starts operation since 15 May. According to Giorgi Kadagidze, head of the Agency, staff is to be employed yet.
Lasha Jugheli, deputy head of the National Bank of Georgia (NBG) Financial Monitoring Service, is appointed deputy head of the Agency.
Giorgi Kadagidze worked earlier as head of the NBG Financial Monitoring Service.
Under the Law of Georgia Concerning the National Bank of Georgia amended in March 2008, legal entity of public law – the Agency for Financial Control – will be established at the NBG for implementation of the state control over the finance sector.
The Agency will be the only state body authorized of control over the finance sector. The Agency will have independent balance and banking account as well as the seal. The Council for Financial Control will head the Agency.
There will be 5 members in the Council: the NBG president and experts with good international reputation in the fiscal field regardless them being nationals of Georgia, or any other country.
The President of Georgia is authorized of appointment and dismissal of the members of the Agency except of the NBG president. Head of the Agency is appointed by the President of Georgia for 5-year term.
The Agency will regulate operations of finance institutes under the current laws that imply registration, issue and cancellation of licenses, inspection, putting in effect of sanctions and limitations. The Agency appoints both a liquidator and an interim administration in the licensed institutes. They are accountable to the Agency.
The Agency is authorized, aiming at stability of the banking system and security of deposits, of establishment and management of the Interim Bank. The Agency is authorized of prohibition to the commercial banks and the non-banking deposit establishments to pay dividends, to increase the wages rates and to increase profits.
The Agency is authorized of determination of both the minimal amount of the capital for a finance institute and regulations of registration of it. Financial Monitoring Service is established at the Agency as a legal entity of public law for fight against legalization of illegal incomes. The President of Georgia appoints head of the Service for 4-year term.