Financial Crime World

Algerian Money Laundering Legislation

Definition and Scope

Money laundering in Algeria is defined as the conversion or transfer of property, knowing it to be the direct or indirect product of an offense or rights thereto which the perpetrator knows to be the proceeds of an offense.

Intentional Element

The intentional element lies in the knowledge and awareness of the prohibited nature of the laundering conduct and the will to carry out the material acts punishable under money laundering.

Penalties for Individuals

  • Main penalties:
    • Simple money laundering is punishable by 5-10 years imprisonment and a fine of 1,000,000 to 3,000,000 DA.
    • Aggravated money laundering is punishable by 10-20 years imprisonment and a fine of 4,000,000 to 8,000,000 DA.
  • Additional penalties:
    • Illicit income and property can be seized or frozen.
    • Individuals may face restrictions on freedom such as legal prohibition, house arrest, or temporary prohibition to exercise a profession or activity.
  • Main penalties:
    • Legal persons committing simple money laundering are punishable by a fine of 1 million DA to 3 million DA.
    • Those committing aggravated money laundering are punishable by a fine of 4 million DA to 8 million DA and confiscation of the laundered property.
  • Additional penalties:
    • Legal entities may face prohibition to exercise a professional or social activity, dissolution, or closure of the establishment.

Extra-Territorial Reach

Algerian money laundering legislation has extraterritorial reach, applying to:

  • Branches and subsidiaries of national financial institutions based abroad.
  • Individuals of Algerian nationality for original acts committed abroad that have the character of a criminal offense both in the country where they were committed and under Algerian law.

Due Diligence Obligations

Professionals subject to this system (banks, financial institutions, and other related financial institutions) must apply due diligence obligations, including:

  • Identification and verification of customer identity.
  • Beneficial owner information.
  • Collection of information on the origin of funds.
  • Conservation of said information for communication purposes.

Suspicion Reporting

Legal persons and natural persons who wilfully and knowingly refrain from issuing or sending a notification of suspicion are punishable by a fine of 100,000 to 1 million DA.

Contact Information

  • Algerian Financial Intelligence Processing Unit: Building Ahmed Francis – Ben Aknoun – Algiers
  • T: +213 215 953 10
  • F: +213 215 951 96
  • Email: contact.ctrf@mf.gov.dz

This information is intended to be a summary and may not cover all aspects of the Algerian money laundering legislation. For more detailed information, consult relevant legal experts or authorities.