Financial Crime World

Algeria’s Efforts to Combat Money Laundering and Terrorist Financing Receive Mixed Review from Global Financial Watchdog

The Financial Action Task Force (FATF) has released its latest report on Algeria’s efforts to combat money laundering and terrorist financing, revealing a mixed bag of compliance with global best practices. While the country scores high marks in certain areas, it falls short in others.

Compliance Highlights

  • Algeria is largely compliant with international standards for:
    • Assessing risk and applying a risk-based approach (R.1)
    • National cooperation and coordination (R.2)
    • Targeted financial sanctions related to terrorism and terrorist financing (R.6)
    • Laws on money laundering offenses (R.3) and customer due diligence (R.10)

Challenges Ahead

  • Algeria faces challenges in the following areas:
    • Laws on confiscation and provisional measures (R.4): partially compliant
    • Requirements related to new technologies (R.15): non-compliant
    • Transparency and beneficial ownership of legal persons and arrangements (R.24 and R.25): non-compliant
    • Regulation and supervision of financial institutions (R.26), DNFBPs (R.28), and cash couriers (R.32): partially compliant

Recommendations for Improvement

  • Algeria needs to improve its:
    • Record keeping (R.11)
    • Reporting of suspicious transactions (R.20)
    • Powers of supervisors (R.27)
  • Strengthening regulation and supervision of non-profit organizations (R.8) and correspondent banking (R.13) is also recommended

The Importance of Compliance

Algeria’s financial sector plays a crucial role in the country’s economy, facilitating international trade and investment. Efforts to combat money laundering and terrorist financing are critical to maintaining its reputation as a stable and secure financial hub.

A Roadmap for Reform

The FATF report provides guidance on how Algeria can strengthen its anti-money laundering and counter-terrorist financing regime, with the ultimate goal of preventing the misuse of its financial system for illegal activities. The country’s authorities have welcomed the feedback and are committed to implementing necessary reforms to achieve compliance with global standards.

Conclusion

While Algeria has made significant progress in some areas, it still faces challenges in others. Addressing these gaps is crucial to ensuring the integrity of its financial system and preventing the misuse of its economy for illicit activities.