Financial Crime World

Tunisia’s Shadow Economy Thrives Amid Political Instability

As Tunisia grapples with a severe economic crisis and political instability, a shadow economy has emerged, fueled by corruption and organized crime.

Mafia-Style Operations Thrive

Despite efforts to combat money laundering and terrorism financing, limited in scope and number, mafia-style operations have taken root in Tunisia. These organizations use violence, intimidation, and corruption to maintain their grip on the market, while government officials turn a blind eye or are complicit.

Judicial System Under Siege

The Tunisian judicial system is plagued by:

  • Politicization
  • Lack of independence
  • Understaffing
  • Limited specialized expertise

Judges have been fired and cases initiated under political instructions, eroding public trust in the judiciary.

Police Brutality on the Rise

Reports of police violence against protesters and detainees have increased, with allegations of physical and moral violations during arrests and interrogations. Human rights organizations are calling for the police to respect the law and the guarantees given to the accused.

Economic Crisis Deepens

Tunisia’s economic crisis has worsened, exacerbated by:

  • Political strife
  • COVID-19 pandemic
  • High inflation
  • Unemployment
  • Marginalization
  • Regional economic inequality
  • Underdevelopment
  • Absence of effective reforms

The informal economy is expanding, while there are few economic opportunities due to the above factors.

Civil Society Under Attack

The government’s approach to combating human trafficking has been criticized for being too focused on security and lacking a comprehensive strategy. NGOs have reported growing hostility towards civil society organizations involved in victim and witness support activities, which may further undermine the state’s capacity to protect victims and whistleblowers.

Press Freedom Deteriorates

Press freedom has deteriorated significantly since the 2019 elections, with politicians openly attacking journalists. Journalists face growing pressure and intimidation from government officials, and many practice self-censorship to avoid angering the president and his supporters.

As Tunisia struggles to maintain stability and address its numerous challenges, the shadow economy continues to thrive, fueled by corruption and organized crime. The lack of effective governance and weak institutions has created an environment conducive to criminal activity, leaving the country vulnerable to further instability and chaos.