Tunisia Falls Short on Anti-Money Laundering Efforts, Says Global Watchdog

Tunisia has been found partially compliant with 14 out of 40 recommendations made by the Financial Action Task Force (FATF) in its recent evaluation, indicating that there is still much work to be done in implementing anti-money laundering laws and combating financial crimes.

Strengths and Weaknesses

According to the report, Tunisia’s risk assessment and risk-based approach to money laundering were deemed satisfactory. However, national cooperation and coordination between law enforcement agencies and financial institutions fell short. The country also failed to effectively criminalize money laundering and terrorist financing, and its confiscation and provisional measures laws were found to be largely compliant with FATF standards.

Key Areas Requiring Improvement

National cooperation and coordination between law enforcement agencies and financial institutions
Effective criminalization of money laundering and terrorist financing
Confiscation and provisional measures laws
Customer due diligence requirements
Record-keeping practices
Regulation of new technologies such as cryptocurrencies
Supervision of financial institutions
Powers of supervisors

Progress Made

The report noted that Tunisia has made progress in implementing measures to combat terrorist financing and targeted financial sanctions related to terrorism. Non-profit organizations were found to be largely compliant with FATF standards.

Areas Where Progress Has Been Made

Combating terrorist financing
Targeted financial sanctions related to terrorism
Regulation of non-profit organizations

Recommendations for Improvement

The report recommended that Tunisia strengthen its financial intelligence unit, improve international cooperation and mutual legal assistance, and enhance its transparency and beneficial ownership requirements for legal persons and arrangements.

Key Recommendations

Strengthen the financial intelligence unit
Improve international cooperation and mutual legal assistance
Enhance transparency and beneficial ownership requirements for legal persons and arrangements

Conclusion

While Tunisia has made efforts to combat money laundering and terrorist financing, the FATF evaluation highlights the need for continued improvement in several areas. The country must address these deficiencies to maintain its credibility as a global financial player and avoid being added to the FATF’s list of non-cooperative jurisdictions.