Tunisia Makes Headway in AML/CFT Regulations, Removed from EU “Blacklist”

In a significant development, Tunisia has made substantial progress in reforming its Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) regulations. This achievement comes after a year-long collaboration between civil society organizations and government bodies.

AML/CFT Regulations: The Background

Tunisia had faced intense pressure to reform its AML/CFT rules following its placement on both the Financial Action Task Force’s (FATF) “high-risk and other monitored jurisdictions” list and the EU’s “blacklist”. In response, local non-governmental organizations (NGOs) began mobilizing nationally and internationally to counter this trend.

The Collaboration

A consortium comprising KADEM, HSC, Greenacre Group, ICNL, and ECNL was established to conduct an effective risk assessment of the sector. This collaboration between state institutions and civil society organizations yielded significant results. During 2019, CTAF, the General Directorate of Associations, Political Parties at the Presidency of the Government, and the Anti-Terrorism Commission worked together with NGOs such as ASF, Jamaity, ASDI, and KADEM to update the sectoral risk assessment using a new methodology developed by Greenacre Group.

The Results

The updated report was presented by CTAF to MENAFATF, which valued the collaboration and the measures implemented to mitigate money laundering (ML) and terrorist financing (TF) risks within the non-profit organization (NPO) sector. As a result of this successful partnership, Tunisia was found compliant with Recommendation 8 at the latest MENAFATF plenary in Cairo.

The Significance

This achievement is noteworthy, as only six countries globally have been rated fully compliant with this recommendation. Furthermore, the FATF has removed Tunisia from its “high-risk and other monitored jurisdictions” list.

A Model for Future Collaborations

The success of this multi-stakeholder dialogue process serves as a model for future collaborations between government bodies and civil society organizations in Tunisia. It demonstrates that trust-building and sustained engagement can lead to positive outcomes.