Financial Crime World

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AML/CFT Best Practices in Algeria: A Look at Compliance

In a move to strengthen its anti-money laundering (AML) and combating the financing of terrorism (CFT) framework, Algeria has implemented various measures to comply with international standards. As part of its efforts, the country has been assessed by the Financial Action Task Force (FATF), which has rated its implementation of AML/CFT best practices.

Assessment Highlights

The FATF assessment found that Algeria is largely compliant in several areas, including:

  • Assessing risk and applying a risk-based approach
  • National cooperation and coordination
  • Money laundering offense
  • Confiscation and provisional measures
  • Targeted financial sanctions related to terrorism and terrorist financing
  • Reliance on third parties

The country has also made significant progress in implementing:

  • Customer due diligence
  • Record-keeping
  • Internal controls

Areas for Improvement

However, Algeria was found to be partially compliant in several areas, including:

  • Definition of money laundering offense
  • Confiscation and provisional measures (related to terrorism)
  • Terrorist financing offense
  • Targeted financial sanctions related to proliferation

The country was also found to be non-compliant in a few areas, including:

  • Transparency and beneficial ownership of legal persons and arrangements

Compliance Rating

Algeria’s overall compliance rating is largely compliant, reflecting its progress in implementing AML/CFT best practices. However, the country still faces challenges in some areas, which it needs to address to further strengthen its AML/CFT framework.

Recommendations for Improvement

To improve its AML/CFT framework, Algeria is recommended to:

  • Enhance its definition of money laundering offense and terrorist financing offense
  • Improve its confiscation and provisional measures
  • Strengthen transparency and beneficial ownership regime for legal persons and arrangements
  • Regulate and supervise financial institutions and DNFBPs (designated non-financial businesses and professions) more effectively

Conclusion

In conclusion, Algeria has made significant progress in implementing AML/CFT best practices, but still faces challenges in some areas. The country’s largely compliant rating reflects its efforts to strengthen its AML/CFT framework, and it is recommended that Algeria continue to work towards improving its compliance with international standards.