Tunisia Moves to Eliminate Bearer Shares Amid International Pressure

Strengthening Financial Sector and Combating Money Laundering

Tunisia has announced plans to eliminate bearer shares from its financial system, a significant move towards greater transparency and anti-money laundering measures. This decision comes as the country looks to align itself with international standards and best practices.

Background on Bearer Shares

Bearer shares have been a major concern for regulators due to their anonymity and lack of transparency. They allow individuals to hold shares in companies without disclosing their identity, making it difficult to track and prevent illegal activities such as money laundering and terrorist financing.

Impact on Financial Sector

The elimination of bearer shares is expected to improve the effectiveness of anti-money laundering measures and combat terrorist financing. Under the new measures, financial institutions in Tunisia will be required to adopt robust internal control mechanisms and due diligence practices to prevent the use of bearer shares for illegal activities.

Key Features of the New Measures

• Financial institutions will be required to implement robust internal controls and due diligence practices
• A more efficient reporting mechanism for suspicious transactions will be established, enabling authorities to respond quickly and effectively to potential threats
• Proper integration with prudential supervision will ensure that financial institutions operate in a safe and sound manner

Timeline and Implementation

While the exact timeline for the elimination of bearer shares is unclear, sources within the government indicate that the process is expected to be completed in the near future.

International Pressure and Global Standards

Tunisia has been under pressure from global organizations, including the Financial Action Task Force (FATF), to take decisive action against money laundering and terrorist financing. The country’s decision to eliminate bearer shares demonstrates its commitment to strengthening its financial sector and improving its compliance with international standards.

Conclusion

Tunisia’s decision to eliminate bearer shares is a significant step forward for the country’s financial sector and its efforts to combat money laundering and terrorist financing. The move is expected to improve transparency and accountability in the financial system, ultimately contributing to a safer and more stable global economy.