The pawnshops are instructed to register on the special electronic portal of the Ministry of Internal Affairs (MIA) from April 1, after which they must automatically provide information about the pawned items. The goal of the amendment is to reduce the turnover of illegal and stolen goods in the pawnshop sector.
According to the order of the Minister of Internal Affairs Vakhtang Gomelauri, the lending entities are also obliged to submit relevant information to the MIA after the regulation will come into force.
Currently, pawnshops have one month to integrate their processes with a special base. The Association of Lending Organizations says the new regulation will be an additional expense for pawnshops, although at the same time, the change will reduce the volume of suspicious transactions in the sector.
"From February 1 to March 1, companies will be required to register on this portal, and from March 1 to April 1, companies will have to integrate their processes into this portal. Of course, this regulation will have additional costs for the companies. All items, which are the subject of collateral must appear on the platform. The platform also must include information about the paid loans. A technical defect will appear after the launch of the portal.
We think that this regulation protects both the consumer and the sector, because the property or jewelry obtained illegally in pawnshops is practically excluded," said Vakhtang Grigalashvili, the founder of the "Lending Organization".
The new obligation was imposed on pawnshops by legislative changes adopted in 2019. Up to 200 lending organizations are registered on the website of the National Bank of Georgia.
