Algeria’s Tough Stance on Money Laundering: Intent and Knowledge Required
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In an effort to combat financial crimes, Algeria has made it clear that intent and knowledge are crucial elements in determining a violation of money laundering laws.
The Intentional Element of Money Laundering
According to Article 2 of Law No. 05-01 and Article 389 bis of the Penal Code, the intentional element of money laundering lies in the perpetrator’s awareness of the prohibited nature of the conduct and their willingness to carry out the material acts punishable under money laundering laws.
- In simpler terms, Algeria requires that individuals or entities have knowledge of the fact that they are engaging in illegal activities, such as converting or transferring funds obtained from criminal activities.
- This intent must be accompanied by a willful act to commit the offense.
Stiff Penalties for Non-Compliance
Those found guilty of money laundering can face severe penalties, including:
- Imprisonment ranging from 5 to 20 years
- Fines ranging from 1 million to 8 million DA
- Confiscation of laundered property
- Restrictions on freedom, such as legal prohibition or house arrest
Legal entities convicted of money laundering can also face fines and confiscation of property, as well as additional penalties like dissolution or prohibition to exercise a professional or social activity.
Global Reach
Algerian law has extraterritorial reach, applying to:
- Branches and subsidiaries of national financial institutions based abroad
- Individuals of Algerian nationality
- Original acts committed abroad that are criminal offenses both in the country where they were committed and under Algerian law
Obligations for Businesses
Professionals subject to anti-money laundering regulations, including banks and financial institutions, must comply with due diligence obligations such as:
- Identification and verification of customer identity
- Collection of information on the origin of funds
- Conservation of said information
Additionally, professionals are required to make declarations to the Financial Intelligence Unit in the event of a suspicion of money laundering.
Consequences for Non-Compliance
Those who wilfully and knowingly fail to comply with these obligations can face fines ranging from 100,000 to 1 million DA.
Enforcement Authorities
The relevant enforcement authorities in Algeria include:
- Cellule de Traitement des Renseignements Financiers (Financial Intelligence Processing Unit)
- Central Office for the Repression of Corruption
- National Organ for Preventing and Fighting Corruption
- High Authority for Transparency, Prevention and the Fight against Corruption
Contact information for these authorities is available upon request.
In summary, Algeria’s tough stance on money laundering emphasizes the importance of intent and knowledge in establishing a violation. Those found guilty can face severe penalties, while businesses must comply with due diligence obligations to avoid consequences.