TUNISIA: A Risk-Based Approach to Anti-Money Laundering Needed, Says Report

Assessing the Current State of Anti-Money Laundering Measures in Tunisia

Tunisia has made significant strides in implementing anti-money laundering (AML) measures, but a new report highlights areas where the country needs to improve its risk-based approach. The report assesses Tunisia’s compliance with the Financial Action Task Force (FATF) Recommendations and identifies key challenges and areas for improvement.

Key Challenges Facing Tunisia

Assessing Risk: A Key Challenge

One of the main challenges facing Tunisia is its ability to accurately assess risks related to money laundering and terrorist financing. The country’s risk assessment framework is not yet comprehensive, hindering efforts to apply a risk-based approach effectively.

National Cooperation and Coordination

Another area where Tunisia needs to improve is national cooperation and coordination among various government agencies and financial institutions. While there have been some positive developments in this regard, more work is needed to ensure effective communication and collaboration.

Areas for Improvement

Money Laundering Offence: Progress Made

Tunisia has made progress in defining a money laundering offence, which is an essential step in combating money laundering. However, the report notes that there are still some gaps in the country’s legal framework regarding this issue.

Confiscation and Provisional Measures: Room for Improvement

The report highlights several areas where Tunisia can improve its confiscation and provisional measures, including strengthening laws and procedures related to asset forfeiture.

Targeted Financial Sanctions: More Work Needed

Tunisia has not yet implemented targeted financial sanctions effectively, according to the report. This is an area where the country needs to improve its efforts to combat terrorist financing.

Recommendations for Improvement

• Strengthen customer due diligence measures to prevent money laundering and terrorist financing.
• Improve record-keeping practices to ensure financial institutions can comply with AML regulations.
• Enhance measures related to politically exposed persons (PEPs) to prevent corruption and money laundering.
• Strengthen correspondent banking relationships to combat money laundering and terrorist financing.
• Regulate and supervise financial institutions effectively to ensure compliance with AML regulations.
• Improve international cooperation to combat money laundering and terrorist financing.

Conclusion

Tunisia has made significant progress in implementing anti-money laundering measures, but there are still areas for improvement. By addressing these challenges and implementing the recommendations outlined above, Tunisia can strengthen its risk-based approach to combating money laundering and terrorist financing.