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Money Laundering in Algeria: Knowledge and Intent Required

In Algeria, money laundering is considered a serious crime that requires both knowledge and intent to establish a violation.

According to Article 2 of Law No. 05-01 and Article 389 bis of the Penal Code, money laundering involves the conversion or transfer of capital which the perpetrator knows to be the direct or indirect product of an offence, or rights thereto which the perpetrator knows to be the proceeds of an offence.

Potential Penalties for Money Laundering Violations

Individuals convicted of money laundering can face severe penalties, including:

  • Imprisonment for 5 to 10 years
  • A fine of 1,000,000 to 3,000,000 DA in the case of simple money laundering
  • Imprisonment for 10 to 20 years and a fine of 4,000,000 to 8,000,000 DA if it is aggravated

Legal entities convicted of money laundering are punishable by:

  • Fines ranging from one million DA to three million DA if the money laundering is simple
  • Four million DA to eight million DA if it is aggravated
  • Confiscation of the laundered property

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

However, the original acts committed abroad must have the character of a criminal offence both in the country where they were committed and under Algerian law.

Registration and Reporting Obligations

Professionals subject to anti-money laundering regulations, including banks and financial institutions, are required to:

  • Apply due diligence measures
    • Identify and verify customer identities
    • Collect information on the origin of funds
    • Conserve this information for communication with the Financial Intelligence Unit

Individuals and entities involved in transactions involving deposits, exchanges, investments, conversion or other capital movements must also report any suspicion of money laundering to the Financial Intelligence Unit.

Penalties for Non-Compliance

Failing to comply with these obligations can result in severe penalties, including:

  • Fines ranging from 100,000 to 1,000,000 DA for individuals and entities

Enforcement Authorities

The relevant enforcement authorities in Algeria include:

  • Financial Intelligence Processing Unit (CTRF)
    • Contact: MINISTRY OF FINANCE, Algerian Financial Intelligence Processing Unit
  • Central Office for the Repression of Corruption (O.C.R.C.)
    • Contact: 6, rue Djamila place El Qods, Hydra, Algiers
  • National Organ for Preventing and Fighting Corruption (O.N.P.L.C.)
    • Contact: 12, rue Souidani Boudjemaa, El Mouradia, Algiers
      • Phone: +213 212 394 76
      • Phone: +213 212 394 55

Note: The High Authority for Transparency, Prevention and the Fight against Corruption does not have publicly available contact details.