Algeria’s Dirty Money: How Drug Trafficking and Extortion Fund the Country’s Economy

Algeria, a country known for its rich oil reserves and strategic location in North Africa, has been plagued by a dark secret. According to a recent report by the Financial Action Task Force (FATF), Algeria’s economy is heavily reliant on illegal sources of funding, including drug trafficking and extortion.

A Vulnerable Financial Sector

The FATF report highlights that the country’s financial sector is vulnerable to money laundering and terrorist financing due to its size and market share. The banking sector, post office, and notaries are particularly at risk due to their wide geographical spread and the services they provide.

• High-Risk Sectors:
  • Banking Sector
  • Post Office
  • Notaries

The real estate sector and DPMS (Deposit Payment Money Services) are also exposed to medium risks, as most of their operations are conducted in cash.

Illegal Activities Abound

It has been alleged that drug traffickers and extortionists are using these sectors to launder their illegal profits, posing a significant threat to the stability of Algeria’s economy. The report notes that the country’s financial authorities have failed to adequately address these issues, leaving the door open for criminal organizations to operate with impunity.

• Illicit Activities:
  • Drug Trafficking
  • Extortion

The Algerian government has been accused of turning a blind eye to the problem, with some even suggesting that high-ranking officials are involved in or benefit from these illicit activities. The lack of transparency and accountability has created an environment where corruption and money laundering can thrive.

A Call for Action

The FATF report concludes that Algeria’s failure to address these issues poses significant risks not only to its own economy but also to regional stability and international security. It is imperative that the government takes immediate action to strengthen its anti-money laundering (AML) and counter-terrorism financing (CFT) measures, increase transparency, and hold those responsible accountable for their actions.

• Urgent Recommendations:
  • Strengthen AML/CFT measures
  • Increase Transparency
  • Hold Those Responsible Accountable

By addressing these issues, Algeria can work towards creating a more stable economy and reducing the threat of corruption and money laundering. The time to act is now.

Related Articles

• Algeria’s Money Laundering Problem: How Drug Trafficking Funds the Country’s Economy
• The Dark Side of Algeria’s Banking Sector: Extortion and Corruption Threaten Economic Stability
• Corruption in Algeria: The Role of High-Ranking Officials in Enabling Illicit Activities