Financial Crime World

TUNISIA: Financial Institutions Must Prioritize Compliance Amid Regulatory Scrutiny

In recent times, financial institutions in Tunisia have been under intense pressure to prioritize compliance with regulatory requirements to ensure transparency and accountability in the banking sector.

Effective Compliance Crucial for Avoiding Non-Compliance Risks

According to Tunisian Stock Bank (TSB), a leading player in the country’s banking market, effective compliance is essential for avoiding non-compliance risk situations that could lead to:

  • Judicial, administrative or disciplinary sanctions
  • Significant financial loss
  • Reputation damage

TSB’s Compliance Efforts

To promote a culture of ethics and compliance within its ranks, TSB has implemented measures aimed at ensuring respect for laws, regulations, and ethical principles specific to banking activities and investment services. The bank’s Compliance Control Department is responsible for:

  • Preventing money laundering and the funding of terrorism
  • Ensuring compliance with international sanctions
  • Updating procedures and tools regularly to reflect new requirements and regulatory developments

Strengthened KYC Mechanism

TSB has also strengthened its mechanism for collecting Know Your Customer (KYC) data, which includes:

  • Verifying customer identification through specialized databases or lists
  • Using IT programs for customer profiling and detection of unusual operations to support staff vigilance

Fighting the Funding of Terrorism and Respecting International Sanctions

The bank is committed to fighting the funding of terrorism and respecting international sanctions by constantly screening customer records and monitoring international operations.

Registration with IRS and Internal Procedures

TSB has registered on the Internal Revenue Service (IRS) website under GIIN code n°5PZ7SZ.00000.LE.788, and has set up internal procedures to identify clients with tax residency in the US and transmit necessary information to the American IRS through the Ministry of Finance.

Commitment to Compliance Culture

As regulatory requirements continue to evolve, TSB is committed to staying ahead of the curve by updating its procedures and tools regularly. The bank’s compliance culture is built on:

  • Awareness
  • Training
  • A commitment to ethical principles
  • Ensuring that all actors within the institution are equipped to navigate complex regulatory environments with confidence.