Financial Crime World

Tunisian Court Asked to Freeze Assets Linked to Terrorism

Request for Asset Freeze Submitted to Tunisian Court

A report has been submitted to the President of the Court of First Instance in Tunis, requesting that assets belonging to individuals or entities suspected of having ties to terrorist organizations be frozen. This request comes after an investigation revealed that Tunisia’s legal framework is not sufficient to effectively combat financial crimes and terrorism.

Current Challenges in Combating Financial Crimes

  • The country’s laws are based on a restrictive concept of assets, making it difficult to freeze funds or other assets owned or controlled by individuals or entities linked to terrorist activities.
  • There is no procedure for examining requests for removal from a list or lifting of a freeze.
  • No provision enables a person subject to such a freeze to contest the decision.
  • No arrangement for communicating orders for the release of erroneously frozen funds exists.
  • No measure authorizing access to funds to cover certain basic expenses has been put in place.

Insufficient Supervision and Detection

  • Checks by financial institutions have not been verified on significant samples by supervisors, making it difficult to detect suspicious transactions.

Recommendations for Improvement

  • Establish a mechanism for freezing assets in accordance with international requirements, such as Resolutions 1373 and 1267.
  • Clarify and strengthen the operational unit of the Tunisian Financial Analysis Commission (CTAF), including having secure premises and increasing staffing and expertise.
  • Create specialized units within the public prosecutor’s department or among investigating magistrates to deal with financial crimes.

Current Situation of AML/CF Investigations

  • AML/CF investigations are carried out by police units under the supervision of the judicial authority, but there is a lack of specialized units.
  • The investigative powers of officers of the judicial police are broad, but professional secrecy cannot be invoked against them.
  • The customs directorate has broad powers to initiate legal proceedings, including the ability to settle matters.

Call for Action

The report urges Tunisia to take immediate steps to strengthen its laws and institutions to effectively combat financial crimes and terrorism. This includes implementing a mechanism for freezing assets, clarifying the operational unit of the CTAF, and creating specialized units to deal with financial crimes.