Tunisia is a founding member of the Middle East and North Africa Financial Action Task Force (MENAFATF), which is an associate member of the Financial Action Task Force (FATF). Members of the MENAFATF signed a memorandum of understanding in 2004 whereby they pledged to adopt and implement the FATF's recommendations. Moreover in its 2006 annual report, the MENAFATF states that all accession countries must adopt the FATF Forty Plus Nine Recommendations and Special Recommendations. However, apart from these statements from the MENAFATF, there is little information addressing Tunisia's actual compliance with the FATF's recommendations. According to the World Bank's 2006 Financial Sector Assessment (FSA), although the anti-money laundering (AML) and combating the financing of terrorism (CFT) regime is generally in line with international standards, weaknesses remain in the legal framework with regard to the freezing of funds, international cooperation, the identification of beneficial owners, the coverage of designated non-financial businesses and professions, and suspicious transaction reporting. As noted in a 2005 U.S. Department of State International Narcotics Control Strategy Report, a comprehensive AML/CFT law was adopted in December 2003, and was expected to significantly improve Tunisia's AML/CFT framework. Tunisia also established a financial intelligence unit (FIU) within the Central Bank of Tunisia, as stated in the World Bank's 2006 FSA. However, only a few suspicious transaction reports have been filed with the FIU in recent years, and the implementation of the AML/CFT law is still in its initial phase.

General Overview

According to the World Bank's 2006 Financial Sector Assessment (FSA), although the anti-money laundering (AML) and combating the financing of terrorism (CFT) regime is generally in line with international standards, weaknesses remain in the legal framework with regard to the freezing of funds, international cooperation, the identification of beneficial owners, the coverage of Designated non-financial businesses and professions, and suspicious transaction reporting (STR). As noted in a 2005 U.S. Department of State (DoS) International Narcotics Control Strategy Report, a comprehensive AML/CFT law was adopted in December 2003 and was expected to significantly improve Tunisia's AML/CFT framework. The 1992 Law Against Narcotics Trafficking, No. 92-52, also includes provisions on money laundering, and the Penal Code "allows for the sequestering, confiscating, or seizure of assets and property in certain situations, including narcotics trafficking and terrorist activities." Per the DoS report, the Ministry of Finance (MoF) monitors operations related to AML/CFT. Tunisia's financial intelligence unit (FIU), which was established within the Central Bank of Tunisia (Banque Centrale de Tunisie, or BCT), adopted two related directives in April 2006, as stated in the World Bank's 2006 FSA. According to the IMF's 2006 Financial System Stability Assessment (FSSA) Update, the first directive addresses the STR template, whereas the second directive establishes requirements on due diligence, internal controls, and STR obligations for credit institutions, off-shore banks, and the Post Office. The IMF report recommended complementing these directives with circulars by the BCT. It also advised implementing and enforcing these regulations to improve supervision of the financial sector's compliance with the AML/CFT requirements.

On November 30, 2004, Tunisia became a founding member of the Middle East and North Africa Financial Action Task Force (MENAFATF), which promotes AML/CFT measures in the MENA region. During the same period, the fourteen founding member countries of MENAFATF signed a memorandum of understanding where they "pledge to adopt, and implement the objectives of the FATF recommendations." According to the 2006 MENAFATF Second Annual Report, published in 2007, one of the main criteria for MENAFATF membership accession is the adoption of the FATF Forty Plus Nine Recommendations and Special Recommendations on AML/CFT. According to the 2005 U.S. DoS report, Tunisia is also a party to both the 1988 United Nations (UN) Drug Convention and the 1999 UN Convention for the Suppression of the Financing of Terrorism, and has signed and ratified the UN Convention against Transnational Organized Crime. Furthermore, Tunisia has bilateral agreements on "criminal matters" with 29 countries and is a member of 12 international agreements on counterterrorism.

According to the 2005 U.S. DoS report, Tunisia is not considered to be an important regional financial center, and there is no apparent sign of money laundering activities through formal financial institutions. To date, no terrorist assets have been identified in Tunisia. While a FIU has been formally established within the BCT, the World Bank's 2006 FSA found that only a small number of STRs have been filed with the FIU in recent years and reported that the implementation of the AML/CFT law is still at an initial phase.

The Principles

1. Legal Systems and Related Institutional Measures

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As noted in the 2005 U.S. DoS report, a comprehensive AML/CFT law was adopted in December 2003 and was expected to significantly improve Tunisia's AML/CFT framework. The 1992 Law Against Narcotics Trafficking, No. 92-52, also includes provisions on money laundering, and the Penal Code "allows for the sequestering, confiscating, or seizure of assets and property in certain situations, including narcotics trafficking and terrorist activities." Per the same report, the MoF monitors operations related to AML/CFT. Tunisia's FIU, which was established in 2006 within the BCT, adopted two related directives in April 2006, as stated in the World Bank's 2006 FSA. According to the IMF's 2006 FSSA Update, the first directive addresses the STR template, whereas the second directive establishes requirements on due diligence, internal controls, and STR obligations for credit institutions, off-shore banks, and the Post Office. The IMF report recommended complementing these directives with circulars by the BCT. It also advised implementing and enforcing these regulations to improve supervision of the financial sector's compliance with the AML/CFT requirements. While a FIU has been formally established within the BCT, the World Bank's 2006 FSA noted that only a small number of STRs have been filed with the FIU in recent years, and the implementation of the AML/CFT law is still at an initial phase. Furthermore, weaknesses remain in the legal framework with regard to the freezing of funds. However, the information provided above does not directly address Tunisia's compliance with the FATF recommendations relating to this principle.

2. Preventive Measures - Financial Institutions

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According to the 2005 U.S. DoS report, the 2003 AML/CFT law "imposes obligations on financial institutions relating to identity checks, verification of transactions of suspect persons, record keeping, and the declaration of transactions above certain monetary limits." Furthermore, while financial institutions are required to gather full identifying information for personal and business accounts, the reporting of suspicious transactions or provisions is not mandatory. It is, however, common for financial institutions to verbally report unusual activities to the BCT. However, the information provided above does not directly address Tunisia's compliance with the FATF recommendations relating to this principle.

3. Preventive Measures - Designated non-Financial Business and Professions

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As stated in the World Bank's 2006 FSA, although the AML/CFT regime is generally in line with international standards, weaknesses remain in the legal framework with regard to the coverage of designated non-financial businesses and professions, as well as STRs. Nevertheless, there is little information publicly available addressing Tunisia's compliance with the FATF recommendations relating to this principle.

4. Legal Person and Arrangements & Non-Profit Organizations

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According to the World Bank's 2006 FSA, although the AML/CFT regime is generally in line with international standards, weaknesses remain in the legal framework with regard to the identification of beneficial owners. Nevertheless, there is insufficient information publicly available addressing Tunisia's compliance with the FATF recommendations relating to this principle.

5. National and International Co-operation

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There is little information publicly available addressing Tunisia's compliance with FATF recommendations relating to this principle. On November 30, 2004, Tunisia became a member of the MENAFATF, which promotes AML/CFT measures in the MENA region. According to the 2005 U.S. DoS report, Tunisia is also a party to both the 1988 UN Drug Convention and the 1999 UN Convention for the Suppression of the Financing of Terrorism, and has signed and ratified the UN Convention against Transnational Organized Crime. Furthermore, Tunisia has bilateral agreements on "criminal matters" with 29 countries, and is a member of 12 international agreements on counterterrorism. Although the AML/CFT regime is generally in line with international standards, the World Bank's 2006 FSA noted that weaknesses remain in the legal framework with regard to international cooperation.