Financial Crime World

Tunisia’s Handling of Seizure Measures Under Scrutiny

The Tunisian government’s approach to seizing assets linked to terrorist financing and money laundering is facing criticism from international experts. A recent report has highlighted several shortcomings in the country’s legal framework, including a lack of clear procedures for freezing assets and limited resources for investigating financial crimes.

According to the report, Tunisia’s Law 2003-75 provides for the confiscation of direct or indirect proceeds of crime following a conviction for terrorist financing or money laundering. However, the law also lacks provisions for administrative asset freezing, which is required under international resolutions such as UNSC Resolution 1267 and 1373.

  • The report notes that Tunisia has been forwarding lists of sanctioned individuals and entities to financial institutions, but lacks legal arrangements to freeze assets administratively.
  • This means that even if a listed individual or entity is identified, the authorities may not be able to freeze their assets without going through a lengthy judicial process.

Criticism of CTAF’s Operational Independence and Resources

Experts have also criticized Tunisia’s lack of mechanism for reviewing freezing measures adopted by other countries under Resolution 1373 and on which it may be requested to take action. The report highlights that the country’s financial intelligence unit, the CTAF, has been established but still lacks operational independence and resources.

Investigation and Prosecution of Financial Crimes

The report also notes that AML/CFT investigations are carried out by police units under the supervision of the judicial authority, but there is no specialized unit within the public prosecutor’s department or among investigating magistrates to deal with financial crimes.

  • The authorities have been urged to define a criminal policy aimed specifically at dealing with the financial dimension of cases and strengthen the financial expertise of prosecutors and judges.

Recommendations for Improvement

The government has been given several recommendations to address these shortcomings, including:

Key Recommendations

  • Clarify the organization of the CTAF and strengthen its operational independence
  • Increase the staffing and resources of the CTAF
  • Define a criminal policy aimed specifically at dealing with financial crimes
  • Strengthen the financial expertise of prosecutors and judges
  • Establish a specialized unit within the public prosecutor’s department or among investigating magistrates to deal with financial crimes

Conclusion

The report concludes that Tunisia’s efforts to combat terrorist financing and money laundering are hindered by its inadequate legal framework and lack of resources, which must be addressed to ensure the country’s compliance with international standards.