Financial Crime World

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Tunisia’s Anti-Money Laundering Efforts Receive Mixed Review

A recent assessment by international experts has highlighted several areas where Tunisia’s anti-money laundering (AML) and combating the financing of terrorism (CFT) efforts could be improved.

Gaps Remain Despite Progress

While Tunisia has made significant strides in implementing its AML/CFT obligations, several gaps remain. One of the main concerns is the lack of clarity around identification thresholds for certain customers, such as those who act on behalf of a third party or whose transactions exceed a certain threshold. The experts recommend that these thresholds be lowered to ensure greater transparency.

Recommendations for Improvement

  • Lower identification thresholds for certain customers
  • Implement explicit due diligence obligation for politically exposed persons (PEPs)
  • Clarify the use of intermediaries or third parties to carry out due diligence measures
  • Eliminate anonymous cash certificates and capitalization bonds
  • Define the requirement for due diligence in business relationships through regulations or guidelines

Reporting Suspicious Transactions

The experts identified several difficulties with the current mechanism, including:

  • Lack of distinction between unusual operations and suspicious operations
  • Excessively vague incentives for reporting institutions
  • High threshold for reporting suspicions, which may deter reporting institutions from filing reports

Recommendations:

  • Provide partial clarification of the notions of unusual transactions and suspicious transactions
  • Eliminate automatic suspension and freezing of transactions that have led to a report

Accelerating Prudential Supervision

The experts emphasized the importance of accelerating prudential supervision to ensure proper integration with AML/CFT obligations.

Conclusion

While Tunisia has made significant progress in implementing its AML/CFT obligations, there are still several areas where improvement is needed. The Tunisian authorities should prioritize addressing these gaps to enhance the effectiveness of their AML/CFT regime.