Algeria Introduces Stringent Financial Crime Reporting Requirements for Companies

In an effort to crack down on financial crimes and promote greater transparency, Algeria has introduced a new set of regulations requiring companies to declare their beneficial owners.

Executive Decree no. 23-429: A New Era in Financial Transparency

Issued on November 29, 2023, Executive Decree no. 23-429 mandates that Algerian companies register with the Trade Registry administration the identities of individuals who hold a direct or indirect stake in the company. This includes:

• Individuals holding at least 20% of the share capital
• Those holding voting rights
• Those who exercise control over the firm

Compliance Deadline: November 30, 2024

Existing companies have until November 30, 2024 to comply with this new reporting requirement. This is seen as a crucial step in preventing financial crimes such as money laundering and terrorist financing.

Consequences of Non-Compliance

Failure to declare beneficial ownership will result in hefty fines of up to 3,750,000 dinars (approximately 25,000 euros).

Part of Algeria’s Anti-Money Laundering and Terrorist Financing Efforts

The new law is part of Algeria’s efforts to implement the anti-money laundering and terrorist financing provisions outlined in Law 23-01, passed on February 7, 2023.

Strengthening Financial Regulatory Framework

The new law also introduces prevention obligations for reporting companies, including:

• Completion of a risk map
• A comprehensive approach aimed at strengthening the country’s financial regulatory framework and ensuring that businesses operate with transparency and integrity.