Financial Crime World

Algeria’s Money Laundering Legislation: Knowledge and Intent Required for Violations

Understanding the Law

In Algeria, money laundering is a serious offense that requires both knowledge and intent to commit the prohibited acts. The Algerian law explicitly mentions the intentional element in Article 2 of Law No. 05-01 and Article 389 bis of the Penal Code.

To establish a violation, it is essential to demonstrate that the perpetrator was aware of the illegal nature of the laundering conduct (laundering fact) and had the will to carry out the material acts punishable under money laundering laws.

Potential Penalties for Money Laundering

Individuals convicted of money laundering face severe penalties, including:

  • Imprisonment for up to 20 years
  • Fines ranging from 1 million to 8 million Algerian dinars (DA)
  • Seizure or freezing of illicit income and property derived from criminal activities

Legal entities found guilty of money laundering are also subject to penalties, including:

  • Fines
  • Confiscation of laundered property
  • Prohibition of exercising professional or social activities
  • Dissolution of the entity
  • Other restrictions on freedom

Extra-Territorial Reach

Algerian money laundering legislation has extraterritorial reach, applying to:

  • Branches and subsidiaries of national financial institutions based abroad
  • Individuals of Algerian nationality
  • Original acts committed abroad must be criminal offenses both in the country where they were committed and under Algerian law

Anti-Money Laundering Obligations

Businesses and individuals operating in specific sectors or engaging in particular activities are subject to additional anti-money laundering obligations, including:

  • Registration and reporting requirements
  • Due diligence measures such as:
    • Identifying and verifying customer and beneficial owner information
    • Collecting information on the origin of funds
    • Conserving records for communication with financial intelligence units

Penalties for Non-Compliance

Failure to comply with these obligations can result in:

  • Fines ranging from 100,000 to 1 million DA
  • More severe penalties or disciplinary actions may be imposed

Enforcement Authorities

The relevant enforcement authorities in Algeria include:

  • Financial Intelligence Processing Unit (CTRF)
    • Ministry of Finance, Algerian Financial Intelligence Processing Unit
    • +213 215 953 10
    • +213 215 951 96
    • contact.ctrf@mf.gov.dz
  • Central Office for the Repression of Corruption (O.C.R.C.)
    • 6, rue Djamila place El Qods, Hydra, Algiers
    • +213 234 800 83
    • +213 234 800 72
    • contact@ocrc.gov.dz
  • National Organ for Preventing and Fighting Corruption (O.N.P.L.C.)
    • 12, rue Souidani Boudjemaa, El Mouradia, Algerian
    • +213 212 394 76
    • +213 212 394 55
  • High Authority for Transparency, Prevention and the Fight against Corruption (no address or contact details available)

These authorities are responsible for investigating and prosecuting money laundering offenses in Algeria.