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DE RUEHTU #1439/01 3031015
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P 301015Z OCT 07
FM AMEMBASSY TUNIS
TO RUEHC/SECSTATE WASHDC PRIORITY 4054
INFO RUEHAS/AMEMBASSY ALGIERS PRIORITY 7552
RUEHEG/AMEMBASSY CAIRO PRIORITY 1501
RUEHLO/AMEMBASSY LONDON PRIORITY 1376
RUEHNK/AMEMBASSY NOUAKCHOTT PRIORITY 0914
RUEHFR/AMEMBASSY PARIS PRIORITY 1845
RUEHRB/AMEMBASSY RABAT PRIORITY 8448
RUEHTRO/AMEMBASSY TRIPOLI PRIORITY 0147
RUEHCL/AMCONSUL CASABLANCA PRIORITY 4142
RUEAWJB/DEPARTMENT OF JUSTICE WASHDC PRIORITY
RHEHNSC/NSC WASHDC PRIORITY
RUEATRS/DEPT OF TREASURY WASHINGTON DC PRIORITY

UNCLAS SECTION 01 OF 03 TUNIS 001439 
 
SIPDIS 
 
SIPDIS 
 
STATE FOR NEA/MAG (HARRIS), EEB/ESC/TFS, S/CT (NOVIS AND 
WORMAN) AND INL 
TREASURY FOR FINCEN 
JUSTICE FOR AFMLS, OIA, OPTDAT 
CAIRO FOR TREASURY (SEVERENS) 
 
E.O. 12958: N/A 
TAGS: EFIN KCRM KTFN SNAR PTER TS
SUBJECT: TUNISIA INTERNATIONAL NARCOTICS CONTROL STRATEGY 
REPORT PART II -- MONEY LAUNDERING AND FINANCIAL CRIMES 
 
REF: A. STATE 138226 
     ¶B. 06 TUNIS 2472 
 
¶1. There is no discernible money laundering or terrorist 
finance activity occurring in Tunisia.  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.  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. 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. The Tunisian penal code also allows for the sequestering, 
confiscation, 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. 
 
¶4. 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. 
In April 2006, the Financial Analysis Commission issued a 
directive ordering all Tunisian banks to designate a 
compliance officer, who serves as the direct liaison with the 
Financial Analysis Commission. 
 
¶5. 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 
 
TUNIS 00001439  002 OF 003 
 
 
all transactions above 5,000 dinars (US $3,780).  Although 
the Financial Analysis Commission reports a rise in the 
number of suspicious transaction reports (STRs) received in 
the past year, this is attributed to better reporting rather 
than an actual increase in suspicious transactions.  The 
Financial Analysis Commission reports that none of the STRs 
filed in 2007 have led to formal investigations or 
prosecutions.  To date, Tunisia has not had any 
money-laundering or terror finance prosecutions. 
 
¶6. Law 2003-75 also imposes obligations on all financial 
institutions to gather full identifying information for 
personal and business accounts.  There are no anonymous or 
numbered accounts allowed in Tunisia.  Additionally, all 
bookkeeping, accounting, and supporting  documentation, in 
both paper and electronic form, must be maintained for 10 
years. 
 
¶7. Banks report regularly receiving the US Government and 
United Nations 1267 Sanctions Committee freeze lists from the 
Central Bank.  The Financial Analysis Commission reports that 
it has never discovered any accounts or assets belonging to a 
listed individual or entity. 
 
¶8. The Central Bank retains strict control over foreign 
currency operations. The Tunisian dinar is not fully 
convertible and it is illegal to export dinars.  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 
that can be used for these purposes.  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. 
 
¶9. The import and export of foreign exchange is regulated by 
Article 76 of Law No. 2003-75.  There is no explicit mention 
of cash couriers or cash smuggling in Tunisian law. 
Non-residents must declare the import of foreign exchange 
equivalent to or in excess of a ceiling fixed by the Ministry 
of Finance.  Currently, the Ministry of Finance has set the 
ceiling at the foreign currency equivalent of 25,000 dinars 
(about US $19,200).  Non-residents entering Tunisia with 
foreign currency or other instruments worth less than 25,000 
dinars are required to declare the total amount if they wish 
to re-export or deposit more than 5,000 dinars (roughly US $ 
4,000).  Non-residents do not need to declare currency 
exports under 5,000 dinars.  Customs may at any time require 
declarations for gold or securities. 
 
¶10. 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. 
 
¶11. 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 
convertibility 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.  Bearer financial instruments or shares are 
 
TUNIS 00001439  003 OF 003 
 
 
strictly prohibited (Act No. 35 of 2000). 
 
¶12. 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. 
 
¶13. 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 submitted its candidacy 
to the Egmont group.  Tunisia has bilateral agreements on 
"criminal matters" with 29 countries and is party to 12 
international agreements on counterterrorism. 
 
¶14. Embassy point of contact is Economic Officer Victoria 
Taylor (E-mail: TaylorVJ@state.gov; Phone: 216-71-107-431). 
GODEC