Strengthening Internal Controls for Anti-Money Laundering (AML), Counter-Terrorism Financing (CTF), and Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF)-ADM LBA/FT/FP-ADM
Internal control mechanisms and policies regarding the prevention of money laundering, terrorist financing, and the financing of the proliferation of weapons of mass destruction.
As part of its efforts to update its framework for addressing financial risks, the Central Bank of Tunisia has amended and supplemented Circular No. 2017-08 to strengthen internal controls at banks and financial institutions with regard to:
- Anti-Money Laundering (AML);
- Countering the Financing of Terrorism (CFT);
- Countering the Financing of the Proliferation of Weapons of Mass Destruction (CFP-WMD).
This circular aims to align practices with international standards and changes in national regulations.
Key changes introduced
1. Risk Assessment and Management (Amended Article 4)
Institutions must:
- Identify and assess their AML/CFT/WMD-related risks, taking into account:
– The characteristics of their customers, products, technologies, and geographic areas;
– National risk assessments;
– Reliable external information.
- Record these assessments in a report that is updated at least every three years, or sooner in the event of a significant occurrence.
- Be able to demonstrate to the BCT the relevance of their assessments and the measures implemented.
2. Definition of Proliferation Risk (FP-ADM)
Any failure to comply with the targeted financial sanctions obligations set forth in UN Security Council resolutions is considered a proliferation financing risk, including:
- The immediate freezing of funds and assets;
- The prohibition on making funds available to designated persons or entities.
3. Compliance Questionnaire (Amended Article 14)
Institutions must assess their AML/CFT framework using:
- a questionnaire included in Appendix 3 of the circular;
- or the Wolfsberg Group questionnaire, if required by a cross-border correspondent bank.
4. Inclusion in the Code of Ethics (Amended Article 53)
Anti-money laundering and counter-terrorist financing rules are now an integral part of the code of conduct set forth in Circular No. 2021-05 on governance.
5. Designation of the CTAF Contact Person (Amended Section 57)
A copy of the decision appointing the liaison officer to the Tunisian Financial Analysis Commission (CTAF) and his or her alternate must be submitted to the BCT within 5 days of the appointment.
6. Reporting of Suspicious Transactions (Amended Section 58)
Reports must be submitted immediately via the goAML platform, in accordance with CTAF procedures.
7. New quarterly report on frozen assets (Article 59 bis added)
Institutions must submit to the BCT, within 20 business days after the end of each quarter, a statement of frozen assets regarding:
- Assets frozen under UN sanctions;
- The asset freezes ordered by the National Commission for the Fight Against Terrorism (CNLCT).
This report must follow the format in Annex 6.
8. Submission of the Risk Assessment Report (Amended Section 60)
The risk assessment report required under Article 4 must be submitted to the BCT each time it is updated.
9. Deletion of the phrase “Number of children” (Article 10)
The field “Number of children” has been removed from the minimum information required to identify individual customers.
10. Reporting Update (Article 11)
Appendix I of Circular No. 2017-06 has been amended to include two new declarations in the “AML/CFT” sub-section.