Financial Crime World

Algeria Enhances Financial Crime Reporting Requirements

The Algerian Financial Intelligence Processing Unit (FIPU) has been established to combat financial crimes by collecting, processing, analyzing, and exchanging intelligence with international organizations. The FIPU’s primary objective is to detect, prevent, and deter the recycling of criminal proceeds and financing of terrorism.

Structure and Functions

The FIPU is headed by a council composed of four services:

  • Investigation and Analysis Service: Conducts in-depth investigations and analyzes financial transactions to identify suspicious activities.
  • Documentation and Data Bases Service: Maintains and updates databases containing information on financial transactions, individuals, and organizations.
  • Judicial Service: Works closely with the judicial system to prosecute cases related to money laundering and terrorist financing.
  • Cooperation Service: Coordinates with international organizations to exchange intelligence and best practices in fighting financial crimes.

Focus Areas

The FIPU’s focus areas include:

  • Money Laundering: The conversion or transfer of assets derived from criminal activities to disguise their illegal origin. The main source of laundered funds is drug trafficking.
  • Financing of Terrorism: Any act that provides or collects funds intended for committing terrorist acts.

Suspicious Transaction Reporting

The FIPU receives Suspicious Transaction Reports (STRs) from obliged persons, including:

  • Banks
  • Financial institutions
  • Insurance companies
  • Currency exchange offices
  • Other regulated professions

These reports are mandatory under Article 19 of the Law N°05-01 and aim to prevent and combat money laundering and terrorist financing.

Procedure for Declaring Suspicious Transactions

Obliged persons are required to submit STRs in due form to inform the FIPU about any suspected illegal activities. The FIPU’s council then decides whether to forward the cases to the state prosecutor, depending on the degree of suspicion.

International Cooperation and Best Practices

The FIPU works closely with international organizations to:

  • Exchange information
  • Share best practices in fighting financial crimes

Conclusion

The FIPU’s efforts aim to strengthen Algeria’s fight against financial crimes and ensure that the country remains a key player in international efforts to combat money laundering and terrorist financing.