Parliament Approves Law Requiring Convicted Financial Offenders to Repay Victims, Imposes Travel Restrictions
By Liza Mchedlidze
Friday, September 5, 2025
On September 3, the Georgian parliament, dominated by the ruling Georgian Dream party, passed a legislative package in its third and final reading that mandates individuals convicted of serious financial crimes to repay damages to victims. The law also bars these convicts from leaving the country until restitution is made, even after serving their prison sentences.
The package amended several laws, including the Criminal Code and Criminal Procedure Code, and had been awaiting final approval since the spring session, when lawmakers paused its passage. In the fall session, the parliament voted unanimously to adopt the measure, which includes a travel ban of up to 16 years for offenders until damages are paid.
"The main point is not the categories of crimes or the length of a conviction set by those categories," said MP Archil Gorduladze, who presented the legislation. "What matters is the damage a specific offender caused to a specific victim. A crime may be minor, but the damage could be large. That is why, based on the scale of the damage, the maximum [exit ban] is set at 16 years."
The bill was introduced amid ongoing prosecutions and arrests of former Georgian Dream officials and associates, drawing criticism from opponents who argued it could be used for personal retribution benefiting the ruling party's billionaire founder, Bidzina Ivanishvili. Then-MP Mamuka Mdinaradze said the law was partly inspired by the case of Giorgi Bachiashvili, a former associate of Ivanishvili convicted of embezzling nearly USD 900 million in cryptocurrency and sentenced in absentia before his alleged abduction abroad and subsequent arrest.
The law outlines the specific crimes covered, including fraud, extortion, misappropriation or embezzlement, property damage by deception, destruction of property, concealment of assets through sham transactions, abuse of power, and interference with computer systems for financial gain. Most offenses must involve damages "in large quantities," which is considered an aggravated circumstance under Georgian law.
The legislation allows the travel ban to remain in place unless the convict repays damages, the victim waives the right to compensation, or the victim consents to lifting the ban. It also permits authorities to recover stolen or embezzled funds not only from the offender but from close relatives or other persons who received property from the convict following the crime, including transactions deemed as money laundering.
Additionally, the law prohibits informal arrangements intended to alleviate a convict's obligations. Convicts who generate undeclared revenue exceeding twice the minimum subsistence level (currently around USD 100) or acquire real estate or vehicles through such arrangements may face fines or up to three years in prison. Family members or others providing such support could face up to five years in prison, with the property subject to confiscation.
However, the law still permits formal transfers of funds into convicts' bank accounts under the supervision of the Georgian central bank or formal property transfers, as these assets can be seized to compensate victims.
