TBC Bank PLC's (LON:TBCG) two founders have stepped down as non-executives after being accused of money laundering in Georgia.
Chairman Mamuka Khazaradze and deputy chair Badri Japaridze have been accused of laundering almost US$17mln by the country's Prosecutor’s Office, which has also requested the pair be placed in pre-trial detention.
TBC said that duo, who founded the bank in the early 1990s, had stepped aside voluntarily so that the bank would not be affected and to concentrate on refuting the charges.
Money laundering offences in Georgia can carry a penalty up to 12 years imprisonment depending on the size of the sums involved.
The Prosecutor’s Office revealed in January it had begun investigating loans made by a subsidiary of TBC to two companies in 2007–2008.
Khazaradze and Japaridze relinquished their positions on the bank’s supervisory board in February following an inquiry by the National bank of Georgia but remained as TBC's chair and deputy chair in a non-executive capacity.
In a statement, TBC said: “The board has full confidence in the integrity of Mr.Khazaradze and Mr Japaridze and looks forward to the gentlemen quickly and fully clearing their names of any claims, including alleged money laundering.”
Senior non-exec Nikoloz Enukidze will take over as chairman in Khazaradze’s absence.
Shares in the FTSE 250 member eased 1.7% to 1,292p valuing the bank at £725mln.