TBILISI, January 29 – Georgia’s ruling parliamentary majority has announced amendments to the country’s Law on Grants that would introduce criminal liability for receiving certain types of foreign funding without prior government approval.
The changes were presented on Wednesday after a meeting of the parliamentary majority by its leader, Irakli Kirkhalia.
Under the proposed amendments, the definition of a “grant” would be significantly expanded and violations of grant regulations would become punishable under criminal law.
According to the draft, a grant would include any money or in-kind resources transferred by any person to another person if those funds are intended, or could be used, to influence Georgia’s authorities, state institutions, or any part of society in matters related to the country’s domestic or foreign policy. The definition would also cover funding linked to the political or public interests of a foreign government or a foreign political party.
Kirkhalia said this definition mirrors the wording used in the United States’ Foreign Agents Registration Act, or FARA.
Under the proposal, receiving such a grant would require prior approval from the Georgian government.
The amendments would also introduce the concept of a foreign legal entity whose activities are substantially focused on Georgia-related issues. Such entities would only be allowed to receive grants with advance government consent. For example, an organization registered abroad but operating mainly in Georgia would need approval from the authorities before accepting funding. Receiving a grant without approval would trigger criminal liability.
The definition of a grant would further include funding provided in exchange for technical assistance. This covers the transfer of technology, specialized knowledge, skills, expertise, services, or other forms of assistance. As a result, if a foreign actor hires experts in Georgia in exchange for payment, that payment would be classified as a grant and would require prior government authorization.
Branches or representative offices of non-resident legal entities would also need government consent to receive grants, including funding from their own parent organizations. In such cases, receiving a grant without approval would result in administrative penalties, specifically a fine equal to twice the amount of the unlawfully received grant.
In addition, violations of the Law on Grants would be added to Georgia’s Criminal Code. Penalties would include fines, 300 to 500 hours of community service, or imprisonment for up to six years.
The amendments would also introduce an aggravating circumstance to the Criminal Code’s article on money laundering. Laundering money for the purpose of engaging in political activities related to Georgia would be punishable by nine to twelve years in prison.
Political parties would also face criminal liability. A senior official of a political party who violates the law on political associations by accepting foreign funding could face a fine, community service, or up to six years in prison.
The draft law would also criminalize what Kirkhalia described as external lobbying. Providing money, securities, property, or other benefits, directly or indirectly, to a foreign citizen or legal entity in exchange for engaging in political activities related to Georgia would carry the same penalties.
Kirkhalia said the amendments are aimed at preventing the financing of unrest, violence, or political destabilization from outside the country. He claimed that over the past five years there have been multiple attempts to overthrow Georgia’s elected government, involving radical domestic opposition groups and foreign-funded non-governmental organizations.
He argued that earlier legislation on transparency of foreign funding helped prevent such attempts and said similar laws have since been adopted in other countries, including France, Turkey, and Serbia.
Kirkhalia also claimed that organizations such as USAID, NED, and EED had financed political unrest in Georgia, adding that the current global political environment has made such funding more difficult but not impossible.
He said the new amendments are intended to close remaining legal loopholes and prevent foreign financing of unrest or violence in the future.
