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MENAFATF Reviews Tunisia's AML/CFT Compliance: Key Findings

· 2 min read
Emily Brown
Forensic Auditor

Overview​

The Middle East and North Africa Financial Action Task Force (MENAFATF) has published an executive summary of its Mutual Evaluation Report on Tunisia's adherence to Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) measures. This analysis, prepared by the World Bank, evaluates Tunisia's compliance with the FATF 40+9 Recommendations using the FATF methodology of 2004.

Context of Tunisia's Financial Sector​

Tunisia, with a GDP of US$28.7 billion in 2005, has a comparatively developed financial sector. The country, however, has a divided economy, with an export-focused offshore sector and a domestic onshore sector, and strict currency control arrangements. Despite its high regulatory environment, family groups and cash transactions remain a challenge.

Key Findings: Strengths and Challenges​

AML/CFT Measures: Strengths​

  • Comprehensive legal framework: Tunisia has laws and regulations for freezing, seizing, and confiscating assets related to AML/CFT offenses.
  • Liability of legal persons and CTAF: Law 2003-75 includes provisions for holding legal persons accountable for AML/CFT offenses and establishes the Tunisian Financial Analysis Commission (CTAF), a financial intelligence unit.

AML/CFT Measures: Areas for Improvement​

  • Asset freezing: Tunisia lacks administrative arrangements for freezing assets as required by Resolutions 1267 and 1373.
  • CTAF: The CTAF requires secure premises, additional staff, and expertise to effectively receive, analyze, and disseminate suspicious transaction reports.
  • Prevention and detection pillars: The implementation of the prevention and detection pillars under Law 2003-75 has not yet begun.

Recommendations for Improvement​

  • Risk analysis: Develop a more comprehensive analysis of criminal activities based on statistical data to create an AML/CFT risk profile.
  • Capacity building: Create a unit within the Legal and Judicial Studies Center to carry out risk assessments to enhance capacity.
  • Implementation priorities: Adopt a more aggressive and coordinated approach to tackle money laundering and terrorist financing with a focus on prioritizing the banking sector, followed by the securities market and insurance market.

Conclusion: Further Actions towards Effective Implementation​

To enhance the effective implementation of the AML/CFT framework and strengthen Tunisia's financial system, the authorities are encouraged to:

  • Accelerate progress
  • Ensure sufficient resources and expertise for relevant institutions
  • Address the identified weaknesses and improve the overall regulatory environment.