Financial Crime World

Tunisia’s Financial Institutions Strengthen Security Measures, Says FATF Report

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A recent report by the Financial Action Task Force (FATF) has given Tunisia a positive assessment of its efforts to combat money laundering and terrorist financing. The country’s financial institutions have implemented various security measures in line with international standards.

Assessing Risk and Applying a Risk-Based Approach

Tunisia is largely compliant with Recommendation R.1 on assessing risk and applying a risk-based approach. This involves identifying and mitigating risks associated with different customers and transactions.

National Cooperation and Coordination

The country’s financial intelligence unit works closely with other agencies to share information and coordinate efforts to combat money laundering and terrorist financing, as required by Recommendation R.2 on national cooperation and coordination.

Implementation of Recommendations

Tunisia has implemented measures to:

  • Criminalize activities related to money laundering (Recommendation R.3)
  • Prevent the use of its financial system for terrorist financing (Recommendation R.5)
  • Put in place targeted financial sanctions related to terrorism and terrorist financing (Recommendation R.6)
  • Target financial sanctions related to proliferation (Recommendation R.7)

Additional Measures

Tunisia has also implemented measures to:

  • Ensure compliance with Recommendations R.8 on non-profit organizations and R.9 on financial institution secrecy laws
  • Implement customer due diligence measures (Recommendation R.10)
  • Maintain records of wire transfers (Recommendation R.11)
  • Prevent the use of its financial system for money laundering and terrorist financing

New Technologies and Record-Keeping Requirements

Tunisia has implemented new technologies, such as electronic know-your-customer (e-KYC) systems, to enhance financial institution security. The country’s financial institutions are also required to maintain records of wire transfers.

Supervision and Regulation

Tunisia has implemented measures to:

  • Regulate and supervise financial institutions (Recommendation R.26)
  • Implement measures related to transparency and beneficial ownership of legal persons and arrangements (Recommendations R.24 and R.25)

Powers of Supervisors and Responsibilities of Law Enforcement Authorities

Tunisia is compliant with Recommendations R.27 on powers of supervisors and R.30 on responsibilities of law enforcement and investigative authorities.

Conclusion

The FATF report concludes that Tunisia has made significant progress in implementing the technical requirements of the FATF Recommendations, and its financial institutions have strengthened their security measures to combat money laundering and terrorist financing.