Financial Crime World

Tunisia’s Anti-Terrorism Measures Face Criticism

A recent review of Tunisia’s anti-terrorism efforts has revealed several shortcomings in its implementation of international sanctions and laws aimed at combating terrorist financing and money laundering.

Shortcomings Identified

According to the report, while Tunisia has enacted legislation that allows for the confiscation of assets linked to terrorist financing or money laundering, it lacks a legal framework to freeze assets administratively in accordance with United Nations resolutions. This means that financial institutions are only required to freeze transactions related to suspected assets, rather than the assets themselves.

  • Tunisia lacks a legal framework to freeze assets administratively under UN resolutions.
  • Financial institutions only freeze transactions related to suspected assets, not the assets themselves.

The report also highlights that Tunisia has not established a mechanism for reviewing freezing measures adopted by other countries under UN Resolution 1373, which requires states to take action against terrorist financing.

Additional Shortcomings

  • Tunisia’s legal provisions on assets are more restrictive than those outlined in international law.
  • There is no procedure in place for examining requests for removal from a list or the lifting of a freeze.
  • Individuals subject to freezes have no right to contest the decision, and there are no arrangements for communicating orders for the release of erroneously frozen funds.

Progress Made

Despite these shortcomings, the report acknowledges that Tunisia has taken some steps to strengthen its anti-money laundering and combating the financing of terrorism (AML/CFT) framework. The country has:

  • Established a Financial Intelligence Unit (FIU), responsible for collecting and analyzing financial data related to suspicious transactions.
  • Created the Counter-Terrorism Financing and Anti-Money Laundering Agency (CTFAMLA), tasked with formulating general directives on the detection of unusual or suspicious transactions and reporting them.

Recommendations

The report concludes that while Tunisia has made progress in implementing its AML/CFT framework, more work needs to be done to address the identified shortcomings. The authorities are urged to:

  • Establish a specialized unit within the public prosecutor’s department to deal with financial crime cases.
  • Strengthen the financial expertise of judges and prosecutors.

Government Response

In response to the report, Tunisia’s government has announced plans to strengthen its anti-money laundering and combating the financing of terrorism (AML/CFT) framework. The government has committed to:

  • Establishing a specialized unit within the public prosecutor’s department to deal with financial crime cases.
  • Strengthening the financial expertise of judges and prosecutors.

Additionally, Tunisia has pledged to:

  • Improve communication with international partners.
  • Increase transparency in its anti-money laundering efforts.
  • Establish secure premises for the Financial Intelligence Unit (FIU).
  • Provide additional training for FIU staff.

Conclusion

While Tunisia still faces challenges in implementing its AML/CFT framework, the government’s commitment to strengthening its anti-money laundering and combating the financing of terrorism efforts is a positive step forward.