Problems with Georgia because of Russia

[ahassanmaly]

Hello
I am holding a Georgian bank account at BOG since 2013 (I was a‌ resident there in 2013 but left the country since then) and still using the bank‍ account to receive payments for freelance work I do
During last month I am having⁠ issues with correspondence/ intermediary banks sending money from my BOG account to other countries (UAE⁤ for example)

Of course I have no relations to Russia or any sanctions but I⁣ heard that transfers from Georgian are being vetted more strictly as there are concerns Russians⁢ are using Georgian banks to transfer money

Anybody have recent issues with BOG or intermediary︀ banks on transfers from Georgia generally to other countries

Between when I am doing these︁ transfers BOTH beneficiary and remitting bank are same person which is me

Thanks

 

[Golden Fleece]

Always have multiple offshore bank accounts, especially if you do business in︂ a high risk sector. You want the option of quickly moving money to another banking︃ jurisdiction if the need arises.

 

[Marie Manila]

In what currency did you try the transfers? Was it USD?

 

[backpacker]

Read -> Georgian central bank denies rumours of termination of transactions from︂ EU
When they deny something it is -at least partially- true. You just experienced it.︃

You should not use Georgian banks for payments if you are a non-resident. High risk︄ country, high risk banking!

 

[lostguy]

wow they felt the had to go public with that declaration, it means they are‌ under pressure and losing customers.

 

[ahassanmaly]

Yes its USD

 

[Georgiabus]

Hi , as I read in your messages , the issues is︂ with the intermediary banks , ( not the BOG directly ) i suppose you got︃ the right assistance of the BOG with the issues and solved . And as you︄ are the beneficiary and remittent (individual to individual) to a country not blacklisted , without︅ Russian ties, your transactions have to be same as always .

As dont have any issue , legal reason , can use perfect.y your︉ bank for payment ets without be resident , Georgia isn’t neither a high risk country︊ or bank .thanks

 

[ahassanmaly]

Well thats an issue that BOG dont have much to do other than sending questions to︀ correspondence bank and wait

why is the transaction flagged to start with other than as︁ it originated from Georgia ?!

 

[backpacker]

No!
https://www.offshorecorptalk.com/threads/georgia-business-account-bog.26737/#post-103228

 

[Martin Everson]

Ouch. Approximately how much money are we‌ talking about here out of interest?

BoG had a ton of USD correspondent banks for‍ processing USD payments due to USD being high risk and loss of a correspondence banking⁠ relationship can happen. Sad part is quite a few of the correspondence banks they used⁤ for USD were Russian banks which sent money on to NY banks 😕.

Perhaps the⁣ remaining correspondent banks in NY were aware of BoG and its connection to Russian financial⁢ system and are just being cautious. As its possible some Russians will have used BoG︀ as a route to evade US sanctions.

https://conditions.bog.ge/en/bank/info/correspondent-banks

 

[ahassanmaly]

I have 20K USD missing now
One transfer to︁ my account in UAE for 5K, that’s missing for almost 3 weeks now
One transfer︂ to ny account in Egypt for 15K, missing for almost 10 days

 

[Martin Everson]

Ok makes sense now.⁠ USD from Georgia to UAE and Egypt 😕. Those are 100% elevated risk transfers regardless⁤ of it being a first party wires as it involves USD and not exactly reputable⁣ countries for anti money laundering. You wouldn't happen to be middle eastern as well with⁢ a middle eastern name? 😕

The correspondent bank if they are holding up the funds will︀ have contacted BoG to request further supporting information for the transaction and BoG may contact︁ you eventually. Alternatively BoG may be hiding fact they have lost the correspondent route they︂ sent USD through and are in the background trying to resolve issue without informing clients︃ of termination of a correspondence banking route. No one likes a bank panic.

In any︄ case these are assumptions I am making based or similiar things I saw here in︅ Bahamas. Ask BoG again for help and copy in management onemail. It is there problem︆ to fix for you.

 

[ahassanmaly]

Hi Martin
Your assumptions are mostly correct and it happened︃ every now and then before that name mismatched with SDNs or so
BUT having 2︄ transfers to 2 different countries at same time stuck is getting me worried that it’s︅ something new especially that both transfers went to 2 different correspondence/ intermediary banks

BOG says︆ 1 transfer which is to UAE the intermediary bank asked for additional info which was︇ sent more than a week ago and still nothing

As for Egypt transfer they say︈ their intermediary bank didn’t even respond till now

I asked them today to recall both︉ funds and I am seriously considering withdrawing all funds from BOG

I Am a Solo︊ customer with BOG so my banker is already working on it but when it comes︋ to this situation they are usually useless as they just send to their remittance department︌ and with time zones difference it takes weeks to get an answer

 

[Martin Everson]

Ok a week is a short time. Wait at least a few more and⁠ if all is ok your funds will be sent on with luck or returned.

Another HUGE problem with BoG is it has a banking subsidiary in Belarus called BNB bank⁤ 🙁. Now I hope you see the problem with owning a Belarusian bank in a⁣ sanctioned country plus connections with sanctioned Russian banks and then processing USD. It is all⁢ a recipe for potential sanctions violations etc.

I removed all my money from BoG and︀ TBC etc some years ago after protests broke out. But I had left the︁ country way before that thank God ange¤%&. I would say run from that bank and︂ don't look back or you can choose to sit and see what happens.

P.S BoG︃ is a systematically important bank to Georgia so government will have its back no matter︄ what I hope.

 

[Georgiabus]

All most complete agree with you Martin !
Over 10K USD to Egypt is a‌ high risk transfer , also from any European country will envolving serious customers questioning
Probably isn’t the first time than him have to face that kind of issues and always‍ the Solo bank provide a good support , and this time going to be same⁠ , the funds send out , or returned .
I was also in Tbilisi in⁤ the protest , and chooses to stay , the country keep stable and safety ,⁣ in special for foreigners .
Georgia have a good and a favorable legislación ( Tax,⁢ Business, Residence) is a easy doing business country , low corruption, and interest ties with︀ China , USA, and Europe.
And as you said BOG , is important for the︁ country government , and will provide support in any possible way if necessary.

Bank system︂ got more regulated, implement more strictly KYC, than make opening a account considerably more difficult︃ to open a bank account , needing to hire a professionals assistance , as isn’t︄ as easy as before , ( just walking across the door and in 5 mi︅ utes get out with your black Visa card "No Name" on it, ) and in︆ a couple of years joint the CRS, (than is a good point to get a︇ bank account, and TAX residence , in advance ) and will be a privilege to︈ have a business in a Low tax country , with a free zone 0% Tax︉ , and as low as 5% tax for IT companies, tax free for crypto ,︊ and the low income individuals business program is almost no tax for the first 150K︋ yearly income.

All business , and daily living are getting difficult , in all most︌ any country in the world , and as you said the only solution is waiting︍ and see how the world is moving and what happen .
thanks

 

[Martin Everson]

Yes Georgia⁤ does have all of that and that's why I had moved there back in the⁣ day over other countries thu&¤#. By the way I still have that apartment I mentioned⁢ to you 3 years ago in thread below 😉.

https://www.offshorecorptalk.com/threads/georgia-business-account-bog.26737/post-103228

Hopefully OP can resolve transfer︀ issue.

 

[Fred]

We can confirm all USD transfers to us from Georgia Banks were stuck in US‌ namely SC.

But after going back and forth with the Solo Lady via WhatsApp 🙄 the clients reported it was credited back after weeks.

 

[ahassanmaly]

That's exactly⁠ the case I am facing Fred
Both my transfers were using SC as the correspondence⁤ bank !

First of all I feel you are trying to defend the⁣ country and BOG here by claiming that Solo bank provide a good support and this⁢ case is going to be same.
I have to say that I have been a︀ Solo customer for at least 3 years and on my first 2.5 Years I faced︁ the worst customer service and attitude from my banker that I finally complained and asked︂ to change her !
she had ZERO Customer service
I myself just LOVES Georgia and︃ consider it a 2nd home and until before COVID I was travelling there every 3︄ month as a minimum and still have good friends there that I consider family, yet︅ BOG is really disappointing when it comes to anything out of the normal .. their︆ Ibank / Mbank is one of the best I have seen in any country but︇ their customer service really needs to improve, they just shake their shoulders saying sorry there︈ is nothing we can do ...

for example on that Transfer to Egypt , they︉ even failed to get a reply from the correspondence bank, so ZERO response from their︊ side..

again I am not against the country or the bank .. but the least︋ I would expect would be to show sympathy towards your customer and his problems, not︌ to say sorry there is nothing we can do especially it's not a 5 USD︍ transfer or one transfer, it's 2 Transfers totalling 20K USD and the problem is with︎ THEIR correspondence bank , so it's their duty to fix the problem and ensure to️ get a reply from the intermediary / correspondence bank

 

[Fred]

I can only guess but most‍ likely SC is the only USD correspondence bank left for BoG and this is shocking⁠ considering the other less solid banks in Georgia - doesn't want to know how it⁤ looks with them.

That's strange because we get same day / next day USD from⁣ Russia Banks namely Tinkoff Bank without any issues from the US correspondence bank - Citi⁢ or JP.

It's more that not less UAE banks doesn't wanna take the USD then.︀

But yes Georgia was too much for too long + Russia Situation that's most likely︁ too much for US.

 

[MiddleEuroAsia]

Your name is hassan and I can assume that‌ you are Egyptian from your name or at least a middle eastern, and if my‍ assumption is true, then man I don't want to kick you while you are down⁠ but ffs, how in the f**k you are dealing with three different banks in three⁤ different countries (which some of them are considered high risk) and in USD on top⁣ of that and still wondering what went wrong.

Most of Egyptians whom I dealt with⁢ or still dealing with in Egypt and UAE know that there are certain things that︀ you don't to or are just common sense!

for example:
1- a transfer from FAB/Mashreq/ADCB/ADIB/ENBD︁ branch in Egypt in (USD or AED) to FAB/Mashreq/ADCB/ADIB/ENBD branch in the UAE is totally︂ fine, and no "ifs and what's" happen with these transfers. why? similar banks, similar currencies,︃ similar geographical areas and the list goes on.

2- now you add the absolute f**k︄ fest that is georgia or any Eastern European country really (minus estonia) in the mix︅ and you will have tons of quesitons coming your way without any reason, minus the︆ fact that you are arab, muslim? I assume, Egypt+UAE+Georgia and probably your name match some︇ PEP or some list right there, and you are using USD.

My 2 cents, avoid︈ USD unless you are dealing with the same banks OR banks from the same country︉ and their branches worldwide, like HSBC Egypt to HSBC singapore then to whatever singaporean bank︊ or ENBD egypt to ENBD UAE then to any UAE bank.

in Georgia, USE GEL,︋ transfer money from BOG to transferwise using GEL, then To Egypt using EGP and to︌ UAE via another EMI like Ebury and then to your UAE bank account using AED.︍ That's the way to do it, even though it's my least favourable way to handle︎ things.

Your money will most likely be released or credited back to your BOG bank️ account, but moving forward, think ahead and see what your options are before doing any‌ kind of risky transfers like that. Or just use Crypto, less headaches and you can‍ cash out in UAE and EG easily, 20k are very very tiny amounts and are⁠ seen as everyday transactions in UAE and EG and no one will bother you when⁤ you deposit them in cash in any UAE/EG bank.

Good luck.