Algeria Strengthens Anti-Money Laundering Framework

Enhancing Reputation as a Financial Hub

In an effort to improve its standing as a major financial center, Algeria has been diligently implementing best practices for anti-money laundering (AML) outlined by the Asia-Pacific Economic Cooperation (APEC). The country’s latest assessment report highlights significant strides made in adopting the FATF Recommendations.

Technical Compliance Rating

The AML/CFT technical compliance rating is an indicator of how well a country has implemented the technical requirements of the FATF Recommendations. The ratings are categorized as follows:

• C: Compliant: Algeria’s implementation is in full compliance with international standards.
• LC: Largely compliant: The country’s implementation is largely in line with international standards, but there may be some areas for improvement.
• PC: Partially compliant: Algeria’s implementation is partially in line with international standards, with significant areas requiring attention.
• NC: Non-compliant: The country’s implementation does not meet international standards.

Key Areas for Improvement

Although Algeria has made considerable progress in several areas, there are still key aspects that require attention:

National Cooperation and Coordination (R.2)

Algeria’s national cooperation and coordination mechanisms are largely in place but need improvement.

Money Laundering Offence (R.3)

The country’s money laundering offence is aligned with international standards, but further efforts are necessary to ensure effective prosecution.

Confiscation and Provisional Measures (R.4)

Algeria’s confiscation and provisional measures are partially compliant, with some areas requiring improvement.

Terrorist Financing Offence (R.5)

The country’s terrorist financing offence is partially compliant, with further efforts needed to ensure effective prosecution.

Strengths in AML Framework

Despite the areas for improvement, Algeria has demonstrated several strengths in its AML framework:

Financial Institution Secrecy Laws (R.9)

Algeria’s financial institution secrecy laws are fully compliant with international standards.

Customer Due Diligence (R.10)

The country’s customer due diligence measures are partially compliant, with some areas requiring improvement.

Politically Exposed Persons (R.12)

Algeria’s politically exposed persons regulations are partially compliant, with further efforts needed to ensure effective implementation.

Way Forward

In conclusion, Algeria has made notable progress in implementing APEC best practices for anti-money laundering, but there are still areas that require attention. The country should continue working towards strengthening its AML framework to ensure a robust and effective system that meets international standards. By doing so, Algeria can enhance its reputation as a financial hub and contribute to the stability of the global economy.