Financial Crime World

Algeria’s Anti-Money Laundering/Counter-Terrorist Financing (AML/CFT) Measures: MENAFATF Report

Assessment of Algeria’s AML/CFT Effectiveness

The Middle East and North Africa Financial Action Task Force (MENAFATF) has released a report evaluating Algeria’s anti-money laundering/counter-terrorist financing (AML/CFT) measures. The report highlights several key areas, including risk assessment, legislative and regulatory framework, supervisory controls, and the financial intelligence unit.

Key Areas of Strength

Risk Assessment

  • Algerian authorities have not completed the risk assessment process.
  • However, based on the size and diversity of services provided by the banking sector, it is considered more vulnerable to ML/TF risks.

Legislative and Regulatory Framework

  • Algeria has adopted and amended several laws and regulations to implement AML/CFT measures:
    • Law No. 05-01 of 2005
    • Decision 12-02 of 2012
    • Law 15-06 of 2015
  • These laws have defined terrorism, terrorist organizations, and terrorist acts, and criminalized the financing of terrorism.

Supervisory Controls

  • Supervisory authorities have issued AML/CFT controls to entities subject to their supervision:
    • Banks
    • Financial institutions
    • Other DNFBPs (Designated Non-Financial Business and Professions)

Financial Intelligence Unit (FIU)

  • The CTRF (Cellule de Traitement et de Renseignements Financiers) was established in 2002 as an independent financial intelligence unit at the Ministry of Finance.
  • Responsible for receiving and processing suspicious transaction reports (STRs).

Areas Requiring Improvement

Risk Assessment

  • The lack of a completed risk assessment process makes it difficult to assess the effectiveness of AML/CFT measures.

Implementation and Enforcement

  • Need for more effective implementation and enforcement of AML/CFT regulations:
    • Notaries sector
    • DPMS (Data Processing and Management Services)

Training and Awareness

  • May be a need for training and awareness programs to ensure that all relevant authorities understand their roles and responsibilities in implementing AML/CFT measures.

Conclusion

The MENAFATF report provides an assessment of Algeria’s AML/CFT measures, highlighting areas of strength and weakness. While the country has made progress in implementing AML/CFT regulations, there is still a need for improvement to effectively combat money laundering and terrorist financing.