Financial Crime World

Algeria’s Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) Efforts

The Middle East and North Africa Financial Action Task Force (MENAFATF) has released a report on Algeria’s AML/CFT efforts, providing an overview of the country’s progress in implementing AML/CFT regulations. Here are the key points summarized:

Risk Assessment

  • Incomplete National Risk Assessment: The Algerian authorities have not yet completed the National Risk Assessment (NRA) process, making it difficult to determine specific risk areas.
  • Vulnerable Sectors: The banking sector is considered vulnerable due to its size, market share, and diversity of services. Other sectors with medium risks include real estate and data processing and management systems (DPMS).
  • Low-Risk Sectors: Stock exchange, insurance companies, financial institutions subject to Banking Committee supervision, and other designated non-financial businesses and professions (DNFBPs), especially lawyers, are considered low-risk.

Legislative and Regulatory Framework

  • AML/CFT Laws: Algeria has adopted Law No. 05-01 of 2005 on AML/CFT, which was amended by Decision 12-02 in 2012 and Law 15-06 in 2015.
  • Terrorism Financing: TF was criminalized by Article 87 bis 4 of the Penal Code and Article 3 of Law No. 05-01.
  • Designation Committee: The Algerian authorities have established a committee to designate persons and organizations on the local list of terrorists and entities, in implementation of UNSCR 1373.

Supervisory Controls

  • Issued AML/CFT Controls: Supervisory authorities issued AML/CFT controls to entities subject to their supervision.
  • Banking Regulation: The Bank of Algeria (BOA) issued Regulation No. 12-03 on AML/CFT controls for banks, financial institutions, and financial departments of Algeria Post and Exchange Offices.
  • Guidance on CDD Measures: CTRF issued guidance on customer due diligence (CDD) measures towards clients of companies, non-financial professions, and some FIs not under BOA authority.

Freezing and/or Seizing Funds

  • Sanctions Committee Decision: The Minister of Finance issued a decision in May 2015 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.
  • Executive Decree: Executive Decree No. 15-113 was also issued in May 2015 related to procedures for seizing and/or freezing funds.

Conclusion

Algeria has made progress in implementing AML/CFT regulations, but there are still areas that require improvement, particularly with regards to completing the NRA process and enhancing supervisory controls.