Financial Crime World

Algeria Strengthens its Anti-Money Laundering (AML)/Combating the Financing of Terrorism (CFT) Framework

Recent Assessment by the Financial Action Task Force (FATF)

In an effort to bolster its AML/CFT regime, Algeria was recently assessed by the FATF, which evaluated the country’s adherence to international standards. The assessment highlighted both progress and areas for improvement in Algeria’s AML/CFT framework.

Key Areas of Progress

  • Risk Assessment: Algeria demonstrated significant progress in risk assessment and applied a risk-based approach to compliance.
  • Customer Due Diligence, Record-Keeping, and Internal Controls: The country has made notable strides in implementing these essential measures.

Areas for Improvement

  • Money Laundering Offenses: Algeria was found to be partially compliant in defining money laundering offenses.
  • Confiscation and Provisional Measures Related to Terrorism: The country requires improvement in strengthening its confiscation and provisional measures related to terrorism.
  • Targeted Financial Sanctions Related to Proliferation: Algeria was identified as partially compliant in this area.
  • Transparency and Beneficial Ownership of Legal Persons and Arrangements: The country was found to be non-compliant in regards to transparency and beneficial ownership.

Recommendations from the FATF

To enhance its AML/CFT framework, the FATF recommended that Algeria:

  1. Refine its definition of money laundering offenses
  2. Strengthen confiscation and provisional measures related to terrorism
  3. Improve its transparency and beneficial ownership regime for legal persons and arrangements

Conclusion

Algeria’s commitment to implementing international standards and addressing areas for improvement positions it well for continued progress in this critical area of financial regulation. As the country continues to work towards improving its compliance with international standards, its financial institutions and designated non-financial businesses and professions (DNFBPs) are likely to benefit from increased transparency, accountability, and oversight.