Tunisia’s Efforts to Combat Financing of Terrorism Under Scrutiny

A recent report assessing Tunisia’s efforts to combat the financing of terrorism (CFT) has revealed areas where the country needs to improve. According to the report, Tunisia has made some progress in implementing international standards set by the Financial Action Task Force (FATF), but there are still significant gaps that need to be addressed.

Assessment of Risk and National Cooperation

Tunisia was found to be partially compliant in terms of assessing risk and applying a risk-based approach. The country’s national cooperation and coordination efforts were also deemed partially compliant.

However, Tunisia fell short in implementing:

• Money laundering and terrorist financing offenses
• Confiscation and provisional measures

Laws and Regulations

Tunisia’s laws regarding targeted financial sanctions related to terrorism and terrorist financing were found to be compliant, while its rules on correspondent banking and money or value transfer services were largely compliant.

However, the country was criticized for not having:

• Adequate regulations in place for new technologies, wire transfers, and reliance on third parties
• Internal controls and foreign branches and subsidiaries that require improvement

Reporting of Suspicious Transactions

The report highlighted Tunisia’s need to strengthen its reporting of suspicious transactions and ensure that financial institutions are equipped with the necessary tools to prevent money laundering and terrorist financing.

Transparency and Beneficial Ownership

Tunisia was found to be largely compliant in terms of transparency and beneficial ownership of legal persons, but needs to improve:

• Regulation and supervision of financial institutions
• Powers of supervisors
• Regulation and supervision of designated non-financial businesses and professions (DNFBPs)

Financial Intelligence Units and Law Enforcement

The report also emphasized the need for Tunisia to enhance its financial intelligence units, as well as the responsibilities and powers of law enforcement and investigative authorities.

Conclusion

While Tunisia has made some progress in combating the financing of terrorism, there are still significant areas where it needs to improve. The country must take concrete steps to address these gaps if it is to effectively prevent the misuse of its financial system for terrorist purposes.