Financial Crime World

Algeria Falls Short in Financial Crime Fighting, Says Global Report

Algeria’s efforts to combat financial crime have been deemed lacking by a recent report from the global Financial Action Task Force (FATF). The country received a mixed assessment, with some areas meeting international standards and others falling short.

Areas of Concern

Risk Assessment and National Cooperation

  • In assessing risk and applying a risk-based approach (R.1), Algeria was found to be non-compliant (NC).
  • Effective coordination between different agencies and institutions is essential for combating financial crime, but Algeria’s performance in this regard has been deemed inadequate (R.2) - partially compliant (PC).

Areas of Strength

Confiscation and Provisional Measures

  • Algeria performed well in confiscation and provisional measures (R.4) and was rated compliant (C).
  • This is a crucial component of a robust anti-money laundering regime.

Customer Due Diligence

  • Algeria also showed strengths in customer due diligence (R.10), where it was again rated compliant (C).

Remaining Challenges

Transparency and Beneficial Ownership

  • Algeria’s performance on transparency and beneficial ownership of legal persons (R.24) and arrangements (R.25) was deemed non-compliant.
  • The country must improve its handling of cash couriers (R.32) to meet international standards.

Implications for Algeria’s Reputation and Investment Attractiveness

The FATF report has significant implications for Algeria’s reputation and its ability to attract foreign investment. To meet international standards, the country must take concrete steps to address these shortcomings and improve its anti-money laundering framework.

Response from Algerian Authorities

In response to the report, Algerian authorities have pledged to take action to address the identified weaknesses. However, many are skeptical about the government’s commitment to reform, given the country’s history of slow progress in implementing anti-money laundering measures.

Conclusion

The FATF evaluation serves as a reminder that combating financial crime is an ongoing process that requires sustained effort and cooperation from all stakeholders. Algeria must work to build trust with its international partners and demonstrate its willingness to tackle financial crime if it hopes to achieve meaningful progress in this area.