Financial Crime World

Financial Crime Definition in Algeria: Understanding FIPU’s Role in Combating Money Laundering and Terrorism Financing

In Algeria, the Financial Intelligence Processing Unit (FIPU) plays a crucial role in detecting, preventing, and deterring financial crimes such as money laundering and terrorism financing. The unit is headed by a chairman who oversees four services: Investigation and Analysis, Documentation and Data Bases, Judicial Service, and Cooperation Service.

FIPU’s Mission

The FIPU’s mission is to collect, process, analyze, and exchange intelligence with foreign authorities to combat the scourge of financial crime. Its primary objective is to prevent the recycling of criminal proceeds and financing of terrorism.

Money Laundering: A Threat to Financial Stability

Money laundering is a serious threat to financial stability in Algeria. It involves the conversion or transfer of assets derived from criminal activities, such as drug trafficking, to disguise their illicit origin. The practice is estimated to generate hundreds of billions of dollars worldwide each year.

In Algeria, money laundering is considered an offense punishable by law. Article 2 of Law No. 05-01 of February 6, 2005 defines it as the conversion or transfer of assets derived from criminal activities, with the intention of hiding their illegal origin or helping individuals involved in the main offense to escape judicial consequences.

Financing of Terrorism: A Menace to National Security

The financing of terrorism is another serious threat to national security in Algeria. Article 3 of Law No. 05-01 of February 6, 2005 defines it as any act that provides or collects funds with the intention of using them to commit terrorist or subversive acts.

FIPU’s Procedure for Reporting Suspicious Transactions

To combat these financial crimes, the FIPU has established a procedure for reporting suspicious transactions. This involves obliging certain categories of persons and institutions to provide Suspicious Transaction Reports (STRs) to the unit.

Entities Required to Submit STRs

The following entities are required to submit STRs to the FIPU:

  • Banks and financial institutions
  • Financial services of the Algeria post office
  • Other affiliated financial institutions
  • Insurance companies
  • Currency exchange offices
  • Mutual insurance companies
  • Betting, gaming, and casinos
  • Legal or natural persons who advise or achieve operations that involve cash deposits, exchanges, investments, or conversions

FIPU’s Role in Combating Financial Crime

The FIPU plays a critical role in combating financial crime in Algeria. Its services include:

  • Investigation and analysis of suspicious transactions
  • Centralizing information and building data bases
  • Relations with the prosecutor’s department and judicial examination
  • Bilateral and multilateral cooperation with foreign authorities

Conclusion

The unit’s ultimate goal is to prevent the financing of terrorism and money laundering, thereby ensuring financial stability and national security in Algeria.