Financial Crime World

ALGERIA FAILS TO MEET KEY FATF COMPLIANCE STANDARDS, SAYS REPORT

Algeria’s efforts to combat money laundering and terrorist financing have been deemed inadequate by a recent report from the Financial Action Task Force (FATF), a global watchdog.

Key Findings of the Report

  • Algeria was rated as non-compliant or partially compliant in 15 out of 40 assessed areas.
  • The country failed to meet key standards in several areas, including effective implementation of a risk-based approach to combat money laundering and terrorist financing.
  • Weaknesses were identified in national cooperation and coordination mechanisms, as well as the ability to confiscate and freeze assets related to money laundering and terrorist financing.

Specific Areas of Concern

  • Risk-Based Approach: Algeria has laws in place to address money laundering and terrorist financing, but they are not being enforced consistently.
  • National Cooperation and Coordination Mechanisms: The country’s national cooperation and coordination mechanisms are weak, hindering effective combat against money laundering and terrorist financing.
  • Asset Confiscation and Freezing: Algeria lacks the ability to confiscate and freeze assets related to money laundering and terrorist financing.

Progress in Some Areas

  • The regulation and supervision of financial institutions have improved.
  • Customer due diligence measures have been implemented, but these efforts are not sufficient to address the overall deficiencies identified by the FATF.

Next Steps for Algeria

  • The country has been given a deadline to address the shortcomings identified in the report and to implement the necessary reforms to improve its compliance with FATF standards.
  • Failure to do so could result in further sanctions and reputational damage for the country.

Algerian Government’s Response

The Algerian government has stated that it will work closely with the FATF to address the concerns raised in the report and to implement the necessary reforms to improve its compliance with international standards.