Transparency Int'l Georgia: No Evidence of Money Laundering in TBC Bank Case
Transparency International Georgia has released a legal assessment of the money laundering persecution related to the TBC Bank case, prepared by an international expert.
The case involves the co-founders of the bank Mamuka Khazaradze, Badri Japaridze and businessman Avtandil Tsereteli.
The report, published on May 14, prepared by Australian lawyer Pauline David, an independent expert in money laundering, says that there is no basis to prove Mamuka Khazaradze, Badri Japaridze or Avtandil Tsereteli committed a money laundering offense, either individually or as co-conspirators.
"Today, on May 14, Transparency International Georgia is releasing the assessment of the money laundering prosecution related to the TBC Bank case. The author of the report is independent international expert Mrs. Pauline David. According to the report, there is no basis to prove Mamuka Khazaradze, Badri Japaridze or Avtandil Tsereteli committed a money laundering offense, either individually or as co-conspirators.
"After an assessment of Georgian and international laws, the Indictment, the facts in issue, and accepted international jurisprudence in money laundering cases, and key findings are as follows: There is no evidence from which to infer an intention: to ‘legalize’(launder) any funds obtained by way of the loan; to conceal the ‘illegal origins’ of the loan funds or to integrate those funds back into the legitimate economy.
"Even if the court found every fact in issue in the case in favor of the prosecution, those facts are not capable of supporting a money laundering charge.
"Money laundering and the underlying predicate crime (misappropriation in this case) are separate offenses.
"Proof of a predicate the crime of misappropriation alone is not proof of money laundering.
"Even if the prosecution proved misappropriation, the subsequent conduct alleged could only support the use of misappropriated proceeds, not the laundering of those proceeds.
"Internationally courts condemn the practice of prosecuting for money laundering when the conduct alleged extends no further than conduct capable of proving the predicate crime.
"Because of the statutory time limitation, the crime of misappropriation cannot now be prosecuted as a stand-alone offense, nor can it be proven as a predicate crime.
"It can be an abuse of process to circumvent a statute of limitations by prosecuting a person for an inappropriate or artificially constructed charge (money laundering) to get around the fact that the appropriate charge for the conduct alleged (misappropriation) is statute-barred.
"In many jurisdictions, where the court has determined a prosecution is an abuse of process, the court has used its inherent power to protect the court by terminating those proceedings”, reads the statement released by Transparency International Georgia.
The Prosecutor's Office of Georgia launched an investigation into money laundering by the Chairman and the Deputy Chairman of the Supervisory Board of TBC Bank on 2 August 2018.
Their bank accounts were seized in August 2020. The Prosecutor's Office applied to court with the relevant motion, having officially charged the founders of JSC TBC Bank in July. The two are accused of laundering a total sum of $16,754.000.
The pair paid the bail ordered on them by Tbilisi City Court, 700,000 GEL each, on July 26.
Georgian businessman Avtandil Tsereteli, the father of the founder of TV Pirveli Broadcaster, Vakhtang Tsereteli, was charged as an accomplice in the money laundering case along with the founders of TBC Bank.
The Tbilisi City Court upheld the motion of the Prosecutors’ Office of Georgia and ordered 50,000 GEL bail from him in August. He paid the fine on September 10.
By Ana Dumbadze
Related Story: Trial of TBC Bank Co-founders, Businessman Avtandil Tsereteli Underway at City Court