Banking in Georgia

[JackAlabama]

Many from the s**fluencer‌ crowd still shill Georgian banks. However we are now in the 2020s and they are‍ not what they used to be.
It was very good actually and until not so⁠ long ago. But not today.

 

[Marzio]

Why not? Georgia‌ is not EU and ProCredit Bank Georgia is a subsidiary, not a branch.

 

[Spinat]

That would work with a‌ bank in Georgia, what company have you asked to help you?

 

[catpower]

My question was about a company offering this service..Happy‍ Georgia in Tbilisi, non feedback anywhere...

Manuel Masseret -⁤ H.M.S. LLC - Nutsubidze Street 36, building 1 - Entrance 2 - App 25- Tbilisi⁣ 0177 - Georgia /(+995) 599 20 11 06

 

[EUman]

This is simply NOT TRUE. I am currently a client and all transaction are︀ don just FINE. No problems.
I think most of you do some shady staff and︁ that's why you have problems with those banks in GE.

The private banking is a︂ wayyy better than in many Western countries.
TBC , BOG are great banks.

 

[backpacker]

What is not true?
Check first what the post you intend to quote⁤ is about. Than look up to what other post it replied.

Aside from that, good⁣ to hear that your banking experience in Georgia is positive. You are obviously one of⁢ the very few .... .

 

[khinkali]

We need to separate the different situations that people are asking about.

For OP, using‌ a service provider who lists zero people on their website and who offers "remotely with‍ POA", confidence is low. If you can't come here to open the account, there are⁠ easier banks (certain providers on this forum are expert in this).

However, the few people⁤ who moan again and again on the Internet about Georgian banks do not reflect the⁣ day to day life of people living here in Georgia.

The experience that I hear⁢ again and again, from people who live here is like mine, excellent. Natural persons, physically︀ in Georgia using BOG SOLO or TBC Concept. Obviously you can pick an offbeat bank︁ or attempt some kind of offshore banking, for which Georgia is not recommended by credible︂ sources.

Also, commercial banking can be tricky if you have International payments. The central bank︃ is very strict and the local banks are therefore also very strict about cross border︄ payments. Expect to provide invoices etc. even for small international payments to a corporate account︅ that wouldn't raise an eyebrow in most places.

For natural persons on Georgian soil with︆ legitimate source of funds, personal banking is great. Including payments from abroad and including crypto︇ from regulated international exchanges and Georgian exchanges (which can also be surprisingly good).

Anyone who︈ says that Georgia is a wild-West free-for-all is wrong. Also, anyone who thinks that only︉ the very few can have a positive banking experience in Georgia is very wrong.

 

[backpacker]

I think most people will agree that banking in Georgia was︈ good (past tense).

I do not know what you expect from a good bank but︉ for me that is Service, Reliability and Responsiveness. Moreover, that the "banker" understands the Terms︊ & Conditions of the bank he is working for.
Furthermore, I expect pricing and rates︋ of a bank to be inline with its overall risk profile.
Unfortunately, these expectations are︌ no longer met by Georgian banks: Interest rates are lower than what investment grade banks︍ in Singapore pay, the "banker" hardly knows the banks's fee schedule (latest experience with TBC)︎ and SWIFT transfers have become difficult when they go to other developing nations.

Due to️ personal ties to the country I am forced to use the local banking system. Otherwise‌ I would have closed my accounts in 2019 when things started to deteriorate.

However, this‍ thread is not about You or Me who can be considered "locals".
This thread has⁠ been opened by @ALFRED MAYER who is a non-resident of Georgia. No matter if he⁤ travels to Georgia or not, Georgian banks do not fit anymore into his search profile.⁣ Generally speaking, for a non-resident it does not make economic sense to use junk rated⁢ banks in a relatively remote region when he/she can get much better conditions (higher interest︀ rates, better service) with investment grade rated banks in stable and developed countries.

 

[khinkali]

That's fine, I just wanted to point out that we need to separate the different‌ issues. I understand @backpacker that you had bad experiences with Georgia, which is truly sad‍ and unfortunate. Some of the sweeping statements on this forum about Georgian banks just don't⁠ fit with the vast majority of people I meet here who have good things to⁤ say, particularly about Concept and SOLO.

As you quoted, Georgian banks are not well recommended⁣ for offshore banking and can be awkward for local businesses with international payments.

 

[Marzio]

Really?

Even local business with resident directos have problems with international payments?

I'm thinking about VZP‌ or IC that deal with international clients.

 

[khinkali]

Just a lot of chasing up. Providing invoices and sometimes other information.

I don't‍ have a company here myself but it's a frequent complaint. I've been told that the⁠ National Bank of Georgia demand evidence to support even small international payments.

I don't really⁤ understand why banks are so much stricter about companies than natural persons, who mostly seem⁣ able to transact internationally and can even interact with regulated crypto exchanges in Georgia and⁢ abroad (thought it's best to chat to them about it beforehand).

 

[backpacker]

You will have to prove all and everything. If you are able to do‍ that AND the majority of these international payments do not go to/come from other developing⁠ nations it should work.
So, check if you like all this hassle before investing too⁤ much time.

I am not into EMI's but in case you proceed with your idea,⁣ the new digital banking licenses NBG is starting to hand out might make it easier⁢ for smaller international transactions -> The 15th commercial and the First digital bank joins the︀ banking system of Georgia

Reason: Too much dirty money and chaotic KYC!
Georgia is closely monitored due its proximity to Iranian and Russian money. Iranian money has been︂ reduced significantly but now the problem is Russian money which is even worse, considering the︃ geopolitical situation.

Let's see how their SEPA ambitions evolve.

.... because of all the people (non-residents) who think it is a great idea to establish︅ a company in Georgia for dubious purposes. This forum serves as an excellent example.

 

[Marzio]

Paysera disrupting the Georgian banking scene (at⁤ least for SEPA transfers) 😎

 

[Houdini]

okay, thanks, what about Paxum, they will still work there?

 

[ska]

What do you mean exactly? Which are the pros?

 

[backpacker]

For everyone who still believes in Georgia and it's gorgeous banking system, following the new‌ ToS with regards to outgoing transfers ->

And these are just the countries they officially announce. There are⁣ many more where it is impossible to wire any funds to.
Btw. even though BoG/SOLO⁢ mentions internal policies, all banks have adopted the same internal policy with regards to this︀ matter. There must have been a lot of pressure from "friendly governments".

 

[tolstoy]

A real eye opener⁢ - why i had trouble opening a simple bank account in Georgia with TBC.

 

[backpacker]

The purge -> https://news.russia.postsen.com/world/138743.html
Others will follow in January . And it is not only‌ one nationality which is affected.

 

[xeathk]

Thank you for providing,⁢ may you please tell us where you found this page?

 

[oldtimer2]

This is a very⁢ useful post, thank you. People like TP Solutions offer to open bank accounts in Georgia︀ remotely and the guy running it (Gela) worked for the RS for years. He has︁ a very good insight into what can work or not - but he charges western︂ fee levels. I have fully legit business (b2b) with customers that are household global names︃ but about 4 years ago BoG closed my company accounts with no discussion. At the︄ time I did not have SOLO so maybe i would have got better treatment if︅ i had registered for SOLO but i think our type of business was too new︆ (nobody else does it in / from Georgia) so they washed their hands. TBC opened︇ the company account easily at first and then decided to close with no discussion. Our︈ accountant argued with them and threatened to go to the authorities as business is new︉ for Georgia and can be easily proven to be fully legit. TBC changed their mind︊ and accounts have worked mostly fine every since as long as incoming payments are from︋ EU, USA and similar ‘clean’ countries - and wages and taxes and expenses are paid︌ out of the TBC company account every month. Recently (like last week) we received a︍ legitimate payment from Hong Kong and TBC asked no questions - they just rejected it︎ and sent it back. Their reason? The sender did not provide / transfer to TBC️ using the IBAN number for our company’s account. Everyone knows Hong Kong does not use‌ IBAN system and of course we reminded TBC - but they just repeat the same‍ message. “Sender must use our company IBAN. “. Now in the quoted post above we⁠ can read BoG SOLO rules list a range of countries with restrictions on outbound transfers⁤ (including Hong Kong) but I think its very safe to say they apply the same⁣ restrictions on incoming transfers. As is often the case, the Georgian bank doesn’t want to⁢ discuss the transfer - they just prefer to reject it to minimize any risk to︀ themselves.