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 most U.S. firms in Tunisia do not see corruption as a major barrier to foreign investment, some report that routine business procedures can be affected by corrupt practices. Tunisia's Corruption Perceptions Index score has declined, indicating increasing concerns about corruption, which many citizens view as a significant issue for effective governance. Despite legal frameworks aimed at combating corruption, including asset declaration laws and whistleblower protections, enforcement remains weak, and corruption persists, particularly in public procurement.

In 2023, Tunisia's economy experienced minimal growth of only 0.4 percent, significantly impacted by geopolitical tensions, agricultural production challenges, and rising public debt. Despite a recovery in tourism post-COVID-19, the country continues to struggle with high unemployment and inflation, alongside shortages of essential goods. The government has sought international financial support, but substantial bureaucratic barriers and a large informal sector hinder foreign investment.

Tunisia's investment climate is characterized by substantial bureaucratic barriers and a significant informal sector, which complicates the business environment for legitimate enterprises. Despite efforts to attract foreign direct investment (FDI) through various incentives and reforms, such as the 2016 Investment Law and the Start-Up Act, the flow of inward investment has not met expectations, particularly due to political instability and inadequate infrastructure outside major urban areas. Key sectors for potential investment include agribusiness, aerospace, and renewable energy, bolstered by Tunisia's strategic location and educated workforce.