Financial Crime World

Banking Industry Compliance Trends in Tunisia

Introduction

Following the Arab Spring and the fall of authoritarian president Zine el-Abidine Ben Ali, Tunisia’s banking sector is undergoing significant changes. The country’s financial sector was plagued by poor health, with three major state banks requiring a bailout of over $440m in 2015.

The Need for Reform

Money Laundering Concerns

Money laundering was a significant issue in Tunisia, with cash flowing into the country from neighboring countries such as Libya. The war-torn country was attempting to establish a new government, and as a result, there was an influx of laundered cash.

AML Technology Implementation

To address this problem, SIBTEL, the provider of the interbank electronic clearance system in Tunisia, partnered with FICO Tonbeller to implement its anti-money laundering (AML) technology at four banks. The Central Bank of Tunisia and the Tunisian Association of Banks has since extended the project across the country.

Success of AML Technology

Key Benefits

  • Implemented at five banks currently
  • Successful in reducing money laundering
  • Improved security for international regulators
  • Set a high standard for other countries in the region to follow

Expert Insights

Gerhard Hess, regional sales director for compliance solution in the Middle East and Africa at Fico, explained that the problem was significant due to the presence of Libya, which is a major source of laundered cash flowing into Tunisia and Algeria. Torsten Mayer, vice-president at Fico, added that before the implementation of AML technology, there was no system in place to filter foreign transactions or conduct Know Your Customer (KYC) checks.

Conclusion

The implementation of AML technology in Tunisia’s banking sector has been a significant step towards improving security and reducing money laundering. The country’s efforts to establish a reliable and sustainable location for investment and business have been recognized by international regulators, and the solution has set a high standard for other countries in the region to follow.

References

  • IMF and World Bank provided emergency loans to help restructure state banks
  • SIBTEL partnered with FICO Tonbeller to implement AML technology at four banks
  • Central Bank of Tunisia and Tunisian Association of Banks extended project across country