TBC Bank Group PLC confirmed Jan. 9 that unit JSC TBC Bank is under inspection by the National Bank of Georgia in relation to certain transactions carried out in 2007 and 2008.
The inspection alleges that the transactions in question were not in compliance with a Georgian law on the regulation of conflicts of interest, and the central bank believes the dealings were related to the company's chairman and deputy chairman, the group said.
The historic transactions, which occurred before the group's 2014 IPO, were already scrutinized by the regulator in 2008 but did not result in any action, it noted.
The central bank has so far imposed a fine of about 1 million Georgian lari, while the Georgian Office of Public Prosecution also launched an investigation into the matter, the group added.
TBC Bank denied the allegations and said it intends to vigorously defend its position.
As of Jan. 9, US$1 was equivalent to 2.67 Georgian lari.