VZCZCXRO4893
PP RUEHTRO
DE RUEHTU #2742/01 3131606
ZNR UUUUU ZZH
P 091606Z NOV 06
FM AMEMBASSY TUNIS
TO RUEHC/SECSTATE WASHDC PRIORITY 2191
INFO RUEHAD/AMEMBASSY ABU DHABI PRIORITY 0808
RUEHAS/AMEMBASSY ALGIERS PRIORITY 7332
RUEHLO/AMEMBASSY LONDON PRIORITY 1204
RUEHNK/AMEMBASSY NOUAKCHOTT PRIORITY 0796
RUEHFR/AMEMBASSY PARIS PRIORITY 1657
RUEHRB/AMEMBASSY RABAT PRIORITY 8251
RUEHTRO/AMEMBASSY TRIPOLI PRIORITY 0424
RUEHCL/AMCONSUL CASABLANCA PRIORITY 4010
RUEAWJB/DEPARTMENT OF JUSTICE WASHDC PRIORITY
RUEATRS/DEPT OF TREASURY WASHINGTON DC PRIORITY

UNCLAS SECTION 01 OF 03 TUNIS 002742 
 
SIPDIS 
 
SIPDIS 
 
STATE FOR NEA/MAG (HARRIS), INL 
JUSTICE FOR AFMLS, OIA AND OPDAT 
TREASURY FOR FINCEN AND EB/ESC/TFS 
LONDON AND PARIS FOR NEA WATCHER 
 
E.O. 12958: N/A 
TAGS: EFIN KCRM KTFN TS
SUBJECT: TUNISIA - INTERNATIONAL NARCOTICS CONTROL STRATEGY 
REPORT PART II, FINANCIAL CRIMES AND MONEY LAUNDERING 
 
REF: STATE 157136 
 
¶1. (U) Tunisia is not considered an important regional 
financial center due in large part to the very strict control 
exercised by the Central Bank over financial transactions, 
particularly those involving foreign currency.  There is no 
discernible money laundering activity reported to be 
occurring in Tunisia.  Since 2003, Tunisia has taken 
important steps to create a legal framework for the 
monitoring, investigation and prosecution of money laundering 
and financial crimes.  By creating an interagency Financial 
Analysis Commission headed by the Central Bank Governor, 
Tunisia has also established effective oversight and 
coordination capabilities. 
 
¶2. (U) In December 2003, the Tunisian Parliament passed Law 
No. 2003-75, a comprehensive counterterrorism and anti-money 
laundering law, to support international counterterrorism 
efforts and to establish more severe sentences for 
individuals convicted of terrorist acts.  This law makes it a 
crime to provide financial assistance or any other type of 
support to terrorist activities, and provides for the 
freezing of assets.  Those suspected of violating the law can 
be exempted from charges, however, if they report a planned 
terrorist action to authorities.  Money laundering is 
punishable where false information is proffered relating to 
the illicit origin of property or income arising directly or 
indirectly from an offense.  Money laundering is also defined 
as investing, depositing, transferring or safekeeping of 
property or income resulting from an offense.   The law does 
not delineate specific crimes; rather it broadly states that 
money laundering related to "a crime or infraction" is 
illegal.  Tunisia's 1992 law (Law No. 1992-52) against 
narcotics trafficking also includes provisions that 
contribute to combating money laundering.  Under Articles 2 
and 30 of Law No. 1992-52, anyone aiding in narcotics 
operations or the transfer of proceeds in connection with 
these operations, including financial institutions, can be 
prosecuted. 
 
¶3. (U) The Tunisian penal code also allows for the 
sequestering, confiscating, or seizure of assets and property 
in certain situations, including narcotics trafficking and 
terrorist activities.  The definition of "assets" is broad 
and covers any number of financial or physical assets. 
Financial assets are traced by the Central Bank and Financial 
Analysis Commission, each of which has broad powers for 
investigating and seizing financial assets.  Following an 
initial freeze of assets, authorities have four days to 
present additional supporting evidence before the assets must 
be released.  At any time, the reviewing magistrate can 
release frozen assets if he/she determines the evidence does 
not support such measures.  Tunisia has no legal provisions 
for sharing seized criminal assets with other governments. 
The Financial Analysis Commission reports that it has never 
had to freeze assets in response to money-laundering or 
terrorist finance accusations. 
 
¶4. (U) In 2003, Tunisia created an interagency Financial 
Analysis Commission that includes representatives from the 
Central Bank, Ministry of Finance, Ministry of Interior, 
Customs and the judiciary.  The Central Bank Governor acts as 
head of the commission, which has both an investigatory and 
advisory role in combating money laundering and terrorist 
financing.  The Financial Analysis Commission has oversight 
functions for banks, non-banking financial institutions such 
as stock brokerages, insurance companies and casinos, 
intermediaries such as lawyers as well as non-governmental 
organizations.  Under Law 2003-75 all institutions or 
intermediaries must report any suspicious, or unusual, 
transactions to the Tunisian Financial Analysis Commission 
and freeze related accounts.  Financial institutions are also 
required to report all transactions above 5,000 dinars (3,780 
USD).  Law 2003-75 also imposes obligations on all financial 
institutions to gather full identifying information for 
personal and business accounts.  Additionally, all 
bookkeeping, accounting, and supporting documentation, in 
 
TUNIS 00002742  002 OF 003 
 
 
both paper and electronic form, must be maintained for 10 
years.  In April 2006, the Financial Analysis Commission 
issued a directive ordering all Tunisian banks to designate a 
compliance officer, who will correspond directly with the 
Financial Analysis Commission.  Banks report regularly 
receiving the U.S. Government and United Nations 1267 
Sanctions Committee freeze lists from the Central Bank. 
 
¶5. (U) The Central Bank retains strict control over foreign 
currency operations due to the general non-convertability of 
the Tunisian dinar.  The export of Tunisian dinars, by either 
residents or non-residents, is strictly prohibited.  Bearer 
financial instruments or shares are strictly prohibited (Act 
No. 35 of 2000).  Only certain categories of individuals and 
businesses are allowed to open foreign currency or 
convertible dinar accounts and all of these accounts are 
monitored by the Central Bank.  There are no "secret" or 
numbered accounts allowed in Tunisia. 
 
¶6. (U) Although all fund transfers must go through formal 
banking institutions or the National Post Office, these 
restrictions and currency exchange controls may encourage 
underground methods of moving money or transferring value in 
and out of the country.  Remittances from abroad are a major 
source of hard currency, though there is no evidence of an 
organized alternative transfer system such as hawala.  A 
significant black market in consumer goods does exist in the 
country but is not believed to be funded by illicit proceeds. 
 Residents are generally prohibited from holding or exporting 
foreign currency except for certain purposes such as travel 
or business and are limited in the value of foreign currency. 
 Non-residents entering Tunisia with foreign currency or 
other instruments are required to declare the total amount if 
they wish to re-export a portion (not exceeding 1,000 dinars 
or approximately 755 USD) or deposit any of the money in a 
Tunisian bank.  Non-residents do not need to declare currency 
exports under 1,000 dinars.  Customs may at any time require 
declarations for gold or securities. 
 
¶7. (U) All offshore financial institutions are held to the 
same regulatory standards as onshore financial institutions. 
Offshore financial institutions undergo the same due 
diligence process as onshore banks and are licensed only 
after the Central Bank investigates their references and the 
Ministry of Finance approves their application.  Anonymous 
directors are not allowed.  Tunisia currently has eight 
offshore banks and a considerable number of offshore 
international business companies.  Offshore international 
business companies are subject to all regulatory 
requirements, except for tax requirements and currency 
convertability restrictions.  There are five casinos in 
Tunisia.  Although Tunisians are not legally permitted to use 
them, in practice Tunisians are able to circumvent this 
restriction. 
 
¶8. (U) Tunisia has two free trade zones, in Bizerte and 
Zarzis, with a limited number of companies manufacturing 
products for export.  There are no offshore financial 
institutions located in either free trade zone.  There have 
been no reports of trade-based money laundering or terrorist 
financing activities using either free trade zone. 
Government customs officials are present on site at the free 
trade zones and at qualifying companies to supervise export 
activities.  Prior to opening a business in one of the two 
free trade zones, the company must conclude a contract with 
the free trade zone authority outlining project details, but 
are not required to produce a company history. 
 
¶9. (U) Tunisia is a founding member of the Bahrain-based 
Middle East North Africa Financial Action Task Force 
(MENAFATF), approved in November 2004.  Tunisia is a party to 
both the 1988 UN Drug Convention and the 1999 UN 
International Convention for the Suppression of Financing of 
Terrorism.  Tunisia has signed and ratified the UN Convention 
against Transnational Organized Crime.  Tunisia signed the UN 
Convention Against Corruption in 2004, but has not yet 
ratified the agreement.  Tunisia has bilateral agreements on 
 
TUNIS 00002742  003 OF 003 
 
 
"criminal matters" with 29 countries and is party to 12 
international agreements on counterterrorism. 
BALLARD