FATF Status

Tunisia is no longer on the FATF List of Countries that have been identified as having strategic AML deficiencies

Latest FATF Statement  -  18 October 2019

The FATF welcomes Tunisia's significant progress in improving its AML/CFT regime and notes that Tunisia has strengthened the effectiveness of its AML/CFT regime and addressed related technical deficiencies to meet the commitments in its action plan regarding the strategic deficiencies that the FATF identified in November 2017. Tunisia is therefore no longer subject to the FATF's monitoring process under its ongoing global AML/CFT compliance process. Tunisia will continue to work with MENAFATF to improve further its AML/CFT regime.

Compliance with FATF Recommendations

The latest follow-up to the Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Tunisia was undertaken in 2019. According to that Evaluation, Tunisia was deemed Compliant for 10 and Largely Compliant for 26 of the FATF 40  Recommendations.

US Department of State Money Laundering assessment (INCSR)

Tunisia was deemed a ‘Monitored’ Jurisdiction by the US Department of State 2016 International Narcotics Control Strategy Report (INCSR). Key Findings from the report are as follows: -

Tunisia is not considered a regional financial center. Tunisia has strict currency exchange controls, which authorities believe mitigate the risk of international money laundering.  There is a low level of organized crime in Tunisia. The primary domestic criminal activities that generate laundered funds are clandestine immigration, trafficking in stolen vehicles, and narcotics. Weapons, narcotics, and suspect cash have been seized in many Tunisian cities, some of which are near the borders with Libya or Algeria. Reports of corruption and financial crimes have been increasing since the 2011 revolution.  The smuggling of weapons and contraband through Tunisia is used to support terrorist groups, including al-Qaida in the Islamic Maghreb. Tunisia is especially concerned about militants entering from adjacent Libya.

Money laundering occurs through the financial sector, especially through informal economic activity involving smuggled goods. Since Tunisia has strict currency controls, it is likely that underground remittance systems such as hawala are prevalent. Trade-based money laundering is also a concern. Throughout the region, invoice manipulation and customs fraud are often involved in hawala counter-valuation.  Tunisia has two free trade zones, in Bizerte and Zarzis.

Tunisia has seven offshore banks, and the number of companies with foreign participation is 1,780, of which 1,105 are offshore international business companies (IBCs).

EU Tax Blacklist

Tunisia was removed from EU Tax Blacklist on 23 January 2018 following "commitments made at a high political level to remedy EU concerns".

Rating                                                                           (100-Good / 0-Bad)

Transparency International Corruption Index                          40

World Governance Indicator – Control of Corruption             48

Moderate risks of corruption are an obstacle for businesses investing in Tunisia. The country suffers from a culture of nepotism and cronyism, which are found throughout the government. These practices spurred popular upheavals in 2010, leading to the fall of the government in early 2011. Despite the uprisings of the Arab Spring, corruption is still rampant. High-level corruption is said to be replaced by petty corruption. Tunisia's Penal Code criminalizes several forms of corruption, including active and passive bribery, abuse of office, extortion and conflicts of interest, but the anti-corruption framework is not effectively enforced, although the government has been taking preliminary steps to implement the laws (HRR 2016). Businesses may encounter bribery, extortion or facilitation payments, particularly in the public procurement sector. Even though gift-giving and gift-receiving are criminalized, these practices are commonplace in Tunisia. For further information - GAN Integrity Business Anti-Corruption Portal

In 2022, Tunisia’s economy continued to be heavily impacted by the effects of Russia’s further invasion of Ukraine. Despite a slow recovery from the COVID-19 pandemic, Tunisia’s GDP grew by only 2.4 percent in 2022 after 3.1 percent growth in 2021, and a record contraction of 8.8 percent in 2020. The country still faces high unemployment, high inflation, and rising levels of public debt, in addition to shortages of food products, medicines, and energy commodities due to the ongoing invasion of Ukraine.

On July 25, 2021, citing widespread protests and political paralysis, President Saied took “exceptional measures” under Article 80 of the 2014 constitution to dismiss the prime minister, freeze parliament’s activities for 30 days, and lift the immunity of members of parliament. On August 23, 2021, Saied announced an indefinite extension of the “exceptional measures” period and on September 22, 2021, he issued a decree granting the president certain executive, legislative, and judiciary powers and authority to rule by decree. On September 29, 2021 Saied named Najla Bouden Romdhane as prime minister, and on October 11, she formed a government.

In a July 25, 2022, referendum, 94.6 percent of voters approved a new constitution, much of which President Saied personally drafted. The constitution concentrates powers in the presidency, removes checks and balances on the executive, weakens the parliament, and gives the president enhanced authorities over the judiciary and the legislature.
Elections for the first chamber of Parliament, the Assembly of People’s Representatives, were held in December 2022 with a turnout of 11.4 percent.  Elections for the second chamber, the National Council of Regions and Districts, have not been announced (as of April 2023). International and domestic observers assessed that December 2022 parliamentary elections were technically well-administered but lacked legitimacy and fell short of international standards.

Before the pandemic and President Saied’s decisions on July 25, 2021, successive governments had advanced some much-needed structural reforms in an effort to improve Tunisia’s business climate, including an improved bankruptcy law, investment code, an initial “negative list,” a law enabling public-private partnerships, and a supplemental law designed to improve the investment climate. The Government of Tunisia (GOT) encouraged entrepreneurship through the passage of the Start-Up Act in June 2018. The GOT passed a new budget law in January 2019 that ensures greater budgetary transparency and makes the public aware of government investment projects over a three-year period. These reforms are intended to help Tunisia attract both foreign and domestic investment.

Nevertheless, substantial bureaucratic barriers to investment remain and additional economic reforms have yet to be achieved. State-owned enterprises play a large role in Tunisia’s economy, and some sectors are not open to foreign investment. The informal sector, estimated at 40 to 60 percent of the overall economy, remains problematic, as legitimate businesses are forced to compete with smuggled goods. Due to a growing budget deficit, the GOT sought international lending support in 2022. In October 2022, the GOT and the IMF reached a staff-level agreement on economic policies and reforms to be supported by a new 48-month Extended Fund Facility (EFF) of $1.9 billion. However, final approval has yet to occur as of April 2023.

Tunisia’s strengths include its proximity to Europe, sub-Saharan Africa, and the Middle East; preferential or free-trade agreements with the EU and much of Africa; an educated workforce; and a strong interest in attracting foreign direct investment (FDI). Sectors such as agribusiness, aerospace, infrastructure, renewable energy (notably green hydrogen), telecommunication technologies, and services remain promising. The decline in the value of the dinar over recent years has strengthened investment and export activity in the electronic component manufacturing and textile sectors.

Since 2011, the United States has provided more than $500 million in economic growth-related assistance, in addition to loan guarantees in 2012, 2014, and 2016 that enabled the GOT to borrow nearly $1.5 billion at low interest rates.

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Country Links

Tunisian Financial Analysis Committee (CTAF)​

Central Bank of Tunisia