Tbilisi. Transparency International Georgia previously wrote about the reasons why a register of beneficial owners (BO) needs to be set up in Georgia. The organization spoke about the need for citizens to know who ultimately owns companies that are strategically important for the country as well as the fact that the creation of such a register would help Georgia’s EU integration and the fulfillment of other international obligations.
“Since then, another important reason for creating the registry appeared. After Russia’s full scale invasion of Ukraine and the subsequent decision by Western countries to fully engage their sanctions regimes, beneficial ownership registries have become one of the main tools for tracing sanctioned persons and their assets.
In Georgia, where traces of ownership of many strategically important companies lead to Russia, and where economic dependence on Russia is growing at a rapid pace, setting up a register of beneficial owners is a necessity. Such a register will enable the identification of entities under Western sanctions and help mitigate risks associated with Russian capital in general”.