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Algeria’s Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) Efforts
The Middle East and North Africa Financial Action Task Force (MENAFATF) has evaluated Algeria’s progress in implementing AML/CFT measures, highlighting both advancements and areas for improvement.
Overall Level of Effectiveness
Algeria is considered to have made significant progress in implementing AML/CFT measures. However, there are still some areas that require attention.
Risk Assessment
Algeria has not yet completed its National Risk Assessment (NRA) process. Nevertheless, the Anti-Terrorism Committee (AT) identifies the following sectors as being at high risk due to their size and diversity of services:
- Banking sector: Its large size and diverse range of services make it a high-risk area.
- Post sector: Its geographical spread and services provided also make it a high-risk area.
Legislative and Regulatory Developments
Algeria has adopted several laws and regulations related to AML/CFT, including:
- Law No. 05-01 (2005) on AML/CFT
- Decision 12-02 (2012) amending Law No. 05-01
- Law 15-06 (2015) on combating the financing of terrorism
- Decision 08-21 (2015) establishing a committee to designate persons and organizations on the local list of terrorists and entities
Supervisory Controls
The supervisory authorities have issued AML/CFT controls to entities subject to their supervision, including:
- Regulation No. 12-03 (2003) by the Bank of Algeria (BOA)
- Guidance on CDD measures by CTRF
- Guidance on due diligence measures by the SERC
Other Measures
Algeria has implemented other measures, including:
- Regulating the import and export of banknotes and/or BNIs in foreign currency when they are equal to or greater than 1,000 EURO.
- Freezing and/or seizing funds of persons, groups and entities on the Consolidated List of the Sanctions Committee of the United Nations Security Council.
Conclusion
While Algeria has made progress in implementing AML/CFT measures, there are still areas for improvement, particularly in completing its NRA process and enhancing supervisory controls.