Algeria Introduces Beneficial Ownership Registries to Combat Money Laundering and Terrorism Financing

On November 29, 2023, Algeria issued Executive Decree no. 23-429, a significant step in its efforts to combat money laundering and terrorism financing. The decree requires Algerian companies to disclose their beneficial owners, enhancing transparency and accountability within the country’s corporate landscape.

Key Provisions of the Decree

• Beneficial Ownership Disclosure: All existing and new companies operating in Algeria are required to register with the Trade Registry administration the identity of individuals holding at least a 20% stake in their share capital or voting rights.
• Compliance Deadline: Companies must comply with the decree by November 30, 2024. Failure to declare beneficial ownership will result in fines of up to 3,750,000 dinars (approximately €25,000).
• Risk Map Requirements: In addition to disclosing beneficial ownership, companies are also required to complete a risk map as part of their prevention obligations under the new law.

Implementation and Benefits

The introduction of these regulations is part of the government’s broader efforts to implement anti-money laundering and terrorist financing provisions outlined in Law 23-01, which came into effect on February 7, 2023. The implementation of these measures aims to enhance transparency and accountability within Algeria’s corporate landscape, ultimately contributing to a safer financial environment for both local businesses and international investors alike.

Next Steps

The Algerian government’s commitment to combating money laundering and terrorism financing is evident in the introduction of beneficial ownership registries. As the deadline for compliance approaches, companies operating in Algeria must ensure they meet the requirements outlined in Executive Decree no. 23-429. By doing so, they will not only avoid fines but also contribute to a more transparent and accountable corporate environment.