BCT publishes its annual report on banking supervision for 2016 | Tunisia News Gazette

BCT publishes its annual report on banking supervision for 2016

The Central Bank of Tunisia (BCT), on Thursday, released its annual report on banking supervision for the year 2016.

This 83-page report is published less than 24 hours after start of the procedures to replace governor of the BCT, Chedly Ayari, ordered by the Prime Minister.

It also takes place after the European Parliament’s vote on February 6 to add Tunisia to the blacklist of countries at risk of money laundering.

Coincidentally, this report outlines the major reforms initiated on several levels “with in particular, the law relating to banks and financial institutions with as a backdrop, upholding the principles of good governance, competitive equity and strengthening the foundations of financial stability, the preparation and the commitment by the BCT of a five-year action plan 2016-2020 aimed at convergence by 2020 of the prudential framework towards the Basel III standards”.

The report also refers to the development of the operational capabilities of banking supervision to lay the foundations for effective risk-based supervision and the start of the restructuring process of public banks based on recovery programmes, validated by the BCT and covering the institutional, commercial and operational aspects as well as an approach to solving the problem of compromised debts”.

In this report, the BCT refers to the new mechanism of anti-money laundering and combating terrorism financing (AML/CFT) and recalls that it had issued on September 19, 2017 a new circular on the establishment of internal control rules for the management of this risk.

This overhaul was made necessary following the publication of the Organic Law No. 2015-26 of 7 August 2015 on the AML / CFT and the evaluation by the BCT of the internal mechanism of the AML / CFT and the mutual evaluation conducted by the World Bank and The Middle East and North Africa Financial Action Task Force (MENAFATF) of the national anti-money laundering and terrorist financing mechanism.

In the same report, the BCT pointed to Tunisia’s adherence to the “Legal Entity Identifier” (LEI) mechanism in the framework of a frank adherence to the international effort to promote transparency in global financial markets and to the fight against money laundering and financial crime.

The BCT had already invited, in 2017, Tunisian banks to take the necessary steps to adhere to the recommendations of the Financial Stability Board concerning the obligation for companies to obtain legal entity identifiers.

“These identifiers can be claimed by foreign correspondent banking and this during the establishment of business relations with Tunisian banks, especially in a context of de-risking fueled by a new international policy of risk aversion”, reads the report of the BCT.

But at the end of 2017, 24 Tunisian companies, including only 6 banks, had their own LEIs.

Source: TAP News Agency

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