Project detail - JSC TBC Bank - Nasira Portfolio

Who is our customer?

The contracting party is TBC Bank, headquartered in Tbilisi, Georgia. It is a leading financial institution with a workforce of 11,295 employees as of December 31, 2023. The Bank operates a diversified multichannel platform that includes 147 branches across the country. Founded in 1993, TBC Bank has grown significantly, achieving milestones such as launching a fully digital bank "Space" in 2018 and expanding its operations to Uzbekistan in 2020. The bank's commercial strategy focuses on maintaining its leadership position in Georgia, leveraging digital solutions, and supporting entrepreneurial growth. TBC is one of the largest banks in Georgia and, as a universal bank, covers all segments: Corporates, SMEs, micro, and retail.

What is our funding objective?

The funding objective is to build the capacity of TBC Bank around financial crime risk management (FCRM) to strengthen the compliance function. The Bank seeks advisory services to ensure its first and second lines of defense adhere to internal policies and procedures and are trained to respond adequately to any risks that may arise. TBC’s Compliance department comprises Sanctions and Control, Anti-Money Laundering & Countering the Financing of Terrorism (AML-CFT), and Methodology and Awareness divisions. The advisory services must cater to the needs of the different divisions and differ in nature. For that reason, various service providers will be engaged, with the ultimate purpose of strengthening the compliance function and culture, to adhere to the international best practices while meeting the applicable requirements of multiple legislations and jurisdictions. TBC recognizes the importance of conflict-of-interest management. To this end, the Bank seeks advisory services to ensure that both the first and second lines of defense (namely, employees responsible for compliance and risk management) adhere to internal policies and procedures and are adequately trained to respond to any risks that may arise, particularly in conflict-of-interest management. To address these needs, TBC Bank will commission four assignments centered around: 1) Sanctions; 2) Conflict of interest; 3) Anti-Money Laundering & Countering the Financing of Terrorism (AML-CFT), and 4) Staff training.

Why do we fund this investment?

This project is critical for strengthening the compliance function of a long-term FMO client. The client lacks access to concessional funding to address the topics covered under this Capacity Development Agreement. In the Georgian context, sanctions are a very probable scenario due to the geopolitical risks triggered by tensions between the EC and Georgia’s ruling party. For TBC, it is now more critical than ever to have a robust financial crime risk management framework. This framework is essential to shield the bank against AML-CFT, as well as sanctioned people and companies. As a result, the bank will have a stronger portfolio and a more competent Compliance team. This team will be better equipped to detect, prevent, and mitigate financial crime-related risks. Ultimately, this will lead to a more resilient Nasira portfolio and a more compliant client.

More investments

Date	Total FMO financing
7/8/2024	GEL 2.52 MLN
7/8/2024	GEL 77.28 MLN