Tunisia Tackles Illicit Financial Flows with New Mechanisms for Asset Confiscation

Government Implements Measures to Seize Ill-Gotten Gains, Reduce Money Laundering and Corruption

New Mechanisms to Combat Illicit Financial Flows (IFFs)

The Tunisian government has introduced new mechanisms to combat illicit financial flows (IFFs) and asset confiscation, aiming to reduce money laundering and corruption in the country. The measures include issuing orders for extended confiscation of assets acquired by defendants convicted of serious crimes.

Presumption of Illicit Acquisition

Under the new rules, all assets obtained over a five-year period are presumed to have been illicitly acquired unless the defendant can rebut this presumption. This means that the burden is on the defendant to prove that their assets were not derived from illegal activities.

Separate Civil Confiscation Proceedings

The government has also established separate civil confiscation proceedings against assets deemed illegal. In these proceedings, the initial burden is placed on the state to prove that certain assets were derived from illicit activities.

International Compliance

These new measures are part of Tunisia’s efforts to comply with international regulations and recommendations aimed at combating IFFs. The country is a signatory to several UN conventions, including:

1988 UN Convention against Illicit Traffic in Narcotic Drugs and Psychotropic Substances
2003 UN Convention against Corruption

Tunisia is not immune to IFF-related issues. According to Global Financial Integrity, North Africa accounts for the highest amounts of trade-related illicit flows on the African continent, with Tunisia losing over USD 20 billion from trade-related IFFs in 2015 alone.

Strengthening Domestic Resource Mobilization and Global Macroeconomic Stability

The government has committed to strengthening domestic resource mobilization, supporting developing countries, and enhancing global macroeconomic stability as part of its efforts to address IFFs. This is expected to have a positive impact on the country’s economic stability and development.

International Support for Addressing Money Laundering and IFFs

In related news, the UN has highlighted the need for a methodology to estimate IFFs in order to comply with data requirements stemming from the global Sustainable Development Goals (SDG) indicator framework. The EU and OECD have also played key roles in defining priorities for countries to better address money laundering and IFFs.

Conclusion

The new measures are seen as a significant step forward in Tunisia’s efforts to tackle IFFs and asset confiscation, and are expected to have a positive impact on the country’s economic stability and development.