As of September 1, Georgian banks and other payment service providers are required to temporarily suspend or refuse certain “high-risk” transactions initiated by customers aged over 60, under a regulation that the National Bank of Georgia (NBG) says is aimed at protecting elderly customers from “fraudulent schemes.”
The measure applies to transactions exceeding GEL 500 (approximately USD 180) that are associated with activities considered to carry a high fraud risk, including online trading (“forex”), investment schemes, gambling, and virtual assets. The regulation also covers transactions deemed to reflect “unusual behavior.”
Under a decree adopted by the NBG President in April that took effect today, payment service providers “must temporarily suspend, or where suspension is not feasible, refuse the execution of a transaction initiated by the customer if it is deemed high-risk.”
In such cases, the provider must contact the customer and provide information to “support better decision-making, thereby reducing the risk of manipulation by fraudsters,” according to the decree. Customers will then have 48 hours after initiating a high-risk and/or suspicious transaction to make a final decision on whether to proceed.
The regulation further states that if a customer refuses to allow a suspended electronic payment transaction to proceed, or if the provider is unable to contact the customer during the suspension period, it “shall not execute the corresponding payment order.” At the same time, “the customer is not restricted from re-initiating the same electronic payment transaction,” the regulation says.
The regulation currently applies only to “card-based transactions.” From May 1, 2027, it will also apply to “other electronic payment transactions.”
The NBG said the changes are intended to “strengthen safeguards for vulnerable groups, particularly customers aged over 60, and improve protection against fraudulent schemes.”
Former National Bank President and ex-opposition United National Movement lawmaker Roman Gotsiridze criticized the measure, dismissing it as “complete absurd.”
“Why should a person’s age automatically mean that they need additional ‘screening’ when managing their own money? If the goal is protection from fraud, why is age the main criterion?” Gotsiridze asked.
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