Tunisia Takes Steps to Enhance Anti-Money Laundering Measures

The Tunisian government has taken significant steps to strengthen its anti-money laundering (AML) measures, aimed at combating financial crimes and preventing the misuse of the country’s financial system.

Strengthened AML Regime

According to a recent directive issued by the Central Tunisian Authority for Financial Information (CTAF), credit institutions and postal services are now required to:

• Verify customer identities beyond certain thresholds
  • Customers acting on behalf of third parties
  • Clarify the timing of verification
  • Requirements for cross-border correspondent banking relationships

Enhanced Due Diligence

The CTAF has established an enhanced due diligence requirement for high-risk accounts, while also requiring non-bank financial institutions to report on:

• Purpose and nature of their business relationships

Identification of Beneficial Owners

The government has introduced measures to improve the identification of beneficial owners, a key shortcoming in the country’s AML arrangements. The use of intermediaries or third parties to carry out due diligence measures is now subject to specific requirements, aimed at ensuring that these entities are not used to circumvent AML obligations.

Elimination of Anonymous Instruments

The government has announced plans to eliminate anonymous cash certificates and capitalization bonds, which have been identified as a failure to comply with identification obligations. While some of these instruments have already been eliminated, the authorities have promised to:

• Gradually phase out the remaining ones
• Follow international best practices

Law 2003-75

Law 2003-75 has introduced measures to require financial institutions to adopt AML/CFT practices and programs, including:

• Establishing structured internal control mechanisms
• Creating a mechanism for reporting suspicious or unusual transactions
  • Expected to improve the country’s ability to detect and prevent money laundering and terrorist financing activities

Challenges in Reporting Mechanism

Experts have noted that the reporting mechanism has several difficulties, including:

• Lack of distinction between unusual and suspicious operations
• Potential for vague incentives for reporting institutions
• The authorities have been urged to clarify these ambiguities and ensure a more effective and efficient AML regime.

Ongoing Efforts

The Tunisian government has pledged to continue prioritizing the proper operational functioning of its current mechanism for reporting suspicions, despite its deficiencies or imperfections. Efforts are also underway to:

• Eliminate automatic suspension and freezing of transactions that have led to a report
• Maintain discretion to freeze transactions in specific circumstances

Conclusion

The Tunisian government’s efforts aim to strengthen Tunisia’s AML regime and prevent the misuse of its financial system, while ensuring the country’s compliance with international standards and best practices.