Algeria’s Banking Compliance Challenges Leave Finance in Chaos

The country that finance forgot: Algeria’s banking system is grappling with compliance challenges, leaving financiers on edge and sparking a wave of sudden dismissals and arrests.

A Tumultuous Time for Algerian Financiers

For Nabil Djemaa, one of Algeria’s most experienced bank auditors and former employee of Banque de Développement Local (BDL), the news was explosive. On July 31, he predicted big changes at BDL, citing CEO Mohamed Krim’s close ties to Algeria’s recently fallen political regime. Less than two hours later, Djemaa called back with breaking news: Krim had been dismissed.

A Pattern of Dismissals and Arrests

This is now a common occurrence in Algeria, where one day a senior financier is rumored to be under threat and the next they are fired or behind bars. Aboud Achour, chief executive of Banque Nationale d’Algérie (BNA) and head of Algeria’s banking association, was detained in June on corruption charges. Omar Boudieb, former CEO of Crédit Populaire d’Algérie (CPA), who had already been dismissed by the bank’s board a year earlier over allegations of fraud, followed suit.

A Call for Reform

As Algeria’s banking sector struggles to adapt to new compliance regulations, financiers are left wondering what’s next. The country is in dire need of:

• Modernized Banking Practices: To keep up with international standards and prevent financial irregularities.
• Stricter Oversight: To ensure transparency and accountability in the banking system.

With its reputation as a regional financial hub at stake, Algeria must act swiftly to address these challenges and restore confidence in its banking system.