Financial Crime World

Tunisia Faces Challenges in Implementing FATF Recommendations

Progress Made in Complying with FATF Recommendations

Tunisia has made significant progress in complying with the Financial Action Task Force (FATF) recommendations, but still faces challenges in several areas. According to a recent report by the FATF, Tunisia has demonstrated significant efforts in implementing many of the technical requirements outlined in the FATF Recommendations.

Areas of Improvement

While Tunisia excels in some areas, there are others that require improvement:

  • Assessing Risk and Applying a Risk-Based Approach (LC): Tunisia earns an LC rating for demonstrating good practices in assessing risk and applying a risk-based approach.
  • National Cooperation and Coordination (LC): The country also demonstrates good practices in national cooperation and coordination, earning an LC rating.
  • Money Laundering Offense (LC): Tunisia shows notable improvement in money laundering offense, earning an LC rating.
  • Targeted Financial Sanctions Related to Terrorism and Terrorist Financing (LC): The country demonstrates good practices in targeted financial sanctions related to terrorism and terrorist financing, earning an LC rating.

Areas Requiring Improvement

Tunisia faces challenges in the following areas:

  • Confiscation and Provisional Measures (PC): The country’s performance on confiscation and provisional measures is partially compliant, indicating some progress but still room for improvement.
  • Measures Related to Non-Profit Organizations (NC): Tunisia struggles with implementing measures related to non-profit organizations, earning an NC rating.
  • Financial Institution Secrecy Laws (C): The country has made some progress in financial institution secrecy laws, but there is still room for improvement, earning a C rating.
  • Transparency and Beneficial Ownership of Legal Persons (NC): Tunisia faces challenges in implementing measures related to transparency and beneficial ownership of legal persons, earning an NC rating.

Ongoing Efforts

Tunisia has made significant strides in regulation and supervision of financial institutions, powers of supervisors, international cooperation, including mutual legal assistance, freezing and confiscation, extradition, and other forms of international cooperation.

The country’s authorities have expressed commitment to addressing these challenges and implementing necessary reforms to meet international standards. The FATF will continue to provide guidance and feedback to support Tunisia’s efforts in ensuring full compliance with the FATF recommendations.