Financial Crime World

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Algeria’s Efforts to Combat Money Laundering and Terrorist Financing

Algeria has been making efforts to combat money laundering (ML) and terrorist financing (TF) through legislative and regulatory developments, supervisory controls, and freezing/seizing funds. However, there are still some areas that require improvement.

Risks Assessment

The Algerian authorities have not completed the National Risk Assessment (NRA) process, which makes it difficult to identify high or low-risk areas for various sectors. However, based on the size of the banking sector’s assets and market share, it is considered more vulnerable to ML/TF risks than other sectors.

Sectors Exposed to Risks

The following sectors are exposed to medium risks due to their wide geographical spread, services provided, or operations carried out in cash:

  • Post Sector: Exposed to medium risks due to its wide geographical spread and services provided.
  • Notaries Sector: Exposed to medium risks due to the multiplicity of operations carried out through this sector.
  • Real Estate Sector: Exposed to medium risks as most operations in this sector are carried out in cash.
  • DNFBPs (Designated Non-Financial Businesses and Professions): Exposed to medium risks as most operations in these sectors are carried out in cash.

Legislative and Regulatory Developments

Algeria has made significant progress in combating ML/TF through legislative and regulatory developments:

  • Law No. 05-01 of 2005: Adopted and published in the Official Gazette, this law criminalizes TF and establishes AML/CFT regulations.
  • Decision 12-02 of 2012: Amended Law No. 05-01 to strengthen AML/CFT controls.
  • Law 15-06 of 2015: Further amended Law No. 05-01 to improve AML/CFT regulations.

Supervisory Controls

The Algerian authorities have established various supervisory bodies to monitor and control AML/CFT activities:

  • CTR (Cell for the Prevention and Fight against Money Laundering and Terrorist Financing): Established by Executive Decree No. 02-127 in 2002, this cell is responsible for preventing and fighting ML/TF.
  • Bank of Algeria: Issued Regulation No. 12-03 on AML/CFT controls for banks, financial institutions, and financial departments of Algeria Post and Exchange Offices.

Freezing and/or Seizing Funds

The Algerian authorities have the power to freeze and/or seize funds of persons, groups, and entities on the Consolidated List of the Sanctions Committee of the United Nations Security Council:

  • Minister of Finance Decision: Issued in May 2015, this decision freezes and/or seizes funds of individuals and entities on the UN sanctions list.
  • Executive Decree No. 15-113: Also issued in May 2015, this decree provides procedures for seizing and/or freezing funds.

In conclusion, Algeria has made significant efforts to combat ML/TF through legislative and regulatory developments, supervisory controls, and freezing/seizing funds. However, the country still needs to complete its NRA process to identify high or low-risk areas for various sectors.