Tunisia Country Summary

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. It was also deemed Highly Effective for 0 and Substantially Effective for 0 with regard to the 11 areas of Effectiveness of its AML/CFT Regime.

While corruption is not seen as a primary barrier to foreign direct investment in Tunisia, it remains a significant concern among citizens and has led to various government actions, including the dismissal of judges and arrests of politicians. Tunisia's corruption perception has worsened, with a score of 40 out of 100 in Transparency International's 2023 index, ranking it 87th globally. The government has implemented laws for asset declaration and whistleblower protection, but challenges persist in enforcement and transparency, compounded by a struggling economy and political instability.

In 2023, Tunisia's economy faced significant challenges, including geopolitical tensions, water supply issues affecting agriculture, and increasing public debt, resulting in a modest GDP growth of only 0.4 percent. Despite a recovery in the tourism sector post-COVID-19, the country continues to grapple with high unemployment, inflation, and shortages of essential goods. The government has made efforts to attract foreign investment and improve the business climate, but bureaucratic barriers and political instability have hindered substantial economic reforms.

Tunisia's investment climate is characterized by significant bureaucratic barriers and a concentration of foreign investment in urban areas, particularly in the capital, Tunis. Despite efforts to improve the business environment through reforms and incentives, such as the 2016 Investment Law and the Start-Up Act, challenges remain, including high unemployment, inflation, and a large informal sector. The government continues to seek foreign direct investment, particularly in sectors like agribusiness and renewable energy, but political instability and inadequate infrastructure hinder progress.