Financial Crime World

Tunisia Adopts Risk-Based Approach to Anti-Money Laundering and Terrorist Financing

The Tunisian government has taken a significant step towards combating money laundering and terrorist financing by adopting a risk-based approach to anti-money laundering (AML) and combating the financing of terrorism (CFT).

What is the Risk-Based Approach?

The risk-based approach recognizes that each country must identify its unique risks and develop tailored policies to address them, rather than adopting a one-size-fits-all model. This approach aims to provide high-level principles and procedures for implementing an effective AML/CFT system.

Key Elements of the Risk-Based Approach

  • Public Authority Guidance: Provides guidance on how to identify, assess, and mitigate risks associated with money laundering and terrorist financing.
  • Financial Institution Guidance: Outlines the procedures that financial institutions must follow to implement the risk-based approach.
  • Sector-Specific Regulations: Develops regulations specific to each sector, such as banking, securities, and designated non-financial businesses and professions.

Benefits of the Risk-Based Approach

The adoption of a risk-based approach is expected to have several benefits for Tunisia’s economy and financial stability. These include:

  • Improved AML/CFT measures: The risk-based approach will enable the government to identify and address specific risks associated with money laundering and terrorist financing.
  • Reduced risks: By targeting high-risk areas, the government can reduce the overall risks associated with money laundering and terrorist financing.
  • Increased transparency: The risk-based approach will promote a safer and more transparent financial environment for all stakeholders.

Implementation of the Risk-Based Approach

The Tunisian government has committed to ongoing review and evaluation of the approach to ensure its effectiveness and relevance in addressing emerging risks and challenges. The risk-based approach is expected to be rolled out across various sectors, including banking, securities, and designated non-financial businesses and professions.

By adopting a risk-based approach to AML/CFT, the Tunisian government has taken a significant step forward in strengthening its financial system and protecting against illicit activities.