Algeria’s Financial Intelligence Processing Unit: The Fight Against Money Laundering and Terrorism

In a bid to combat the scourge of financial crime, Algeria has established the Financial Intelligence Processing Unit (FIPU), a specialized independent body tasked with collecting, processing, and analyzing intelligence to detect, prevent, and deter money laundering and terrorist financing.

Headquarters and Organization

The FIPU is headed by a chairman who leads a council comprising senior officials from various government agencies. The unit is divided into four services:

• Investigation and Analysis Service: Responsible for gathering intelligence and conducting investigations.
• Documentation and Data Bases Service: Manages the collection, processing, and analysis of data related to suspicious transactions.
• Judicial Service: Works with the state prosecutor to investigate and prosecute cases related to money laundering and terrorist financing.
• Cooperation Service: Facilitates information sharing with foreign authorities and stakeholders.

Suspicious Transaction Reporting

The FIPU relies on Suspicious Transaction Reports (STRs) from obligated persons such as:

• Banks
• Financial institutions
• Insurance companies
• Professionals who advise or facilitate cash transactions

These reports are mandatory under Algeria’s anti-money laundering and counter-terrorism financing laws.

Money Laundering and Terrorism Financing

Money laundering is the conversion or transfer of assets derived from criminal activity to disguise their illegal origin. The FIPU works to detect and prevent this practice, which is estimated to involve hundreds of billions of dollars globally each year. Terrorism financing is also a major concern, with the FIPU working to identify and disrupt financial flows supporting terrorist activities.

Fighting Crime

The FIPU’s primary role is to analyze STRs and other intelligence to detect suspicious activity. If sufficient evidence is gathered, the unit forwards cases to the state prosecutor for further investigation and potential prosecution. The FIPU also works closely with foreign authorities to share information and best practices in combating financial crime.

Interlocutors

The FIPU engages with various stakeholders, including:

• Banks
• Insurance companies
• Currency exchange offices
• Professionals who advise or facilitate cash transactions

These entities are obligated to report suspicious activity under Algeria’s anti-money laundering and counter-terrorism financing laws.

Conclusion

Algeria’s Financial Intelligence Processing Unit plays a critical role in combating financial crime and preventing money laundering and terrorism financing. Through its robust intelligence gathering and analysis capabilities, the FIPU works tirelessly to disrupt criminal networks and protect the country’s financial system.