Financial Crime World

Anti-Money Laundering and Counter-Terrorist Financing Assessment in Algeria

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Introduction

The Cell de Traitement des Renseignements Financiers (CTR F), Algeria’s Financial Intelligence Unit (FIU), has conducted an assessment of the country’s vulnerability to money laundering and terrorist financing (ML/TF). This report outlines the key findings, areas for improvement, and recommendations to strengthen Algeria’s Anti-Money Laundering and Counter-Terrorist Financing (AML/CFT) framework.

Areas of Vulnerability

The assessment has identified several high-risk sectors in Algeria:

Banking Sector

  • High risk: The banking sector is considered a high-risk area due to its size, market share, and diversity of services provided.
  • Recommendation: Enhance customer due diligence (CDD) measures for all financial institutions.

Post Sector

  • High risk: This sector is also at high risk due to its wide geographical spread and the services it provides.
  • Recommendation: Implement effective risk-based supervision to ensure that entities subject to their supervision are complying with AML/CFT regulations.

Notaries Sector

  • Medium risk: The notaries sector is exposed to medium risks because of the multiplicity of operations carried out through this sector.
  • Recommendation: Provide training and capacity-building programs for professionals in the FIU, supervisory authorities, and other relevant bodies.

Progress Made

Algeria has made significant progress in implementing AML/CFT measures:

Legislative and Regulatory Developments

  • Law No. 05-01 of 2005 on AML/CFT was adopted and published in the Official Gazette issue No. 11 on February 9, 2005.
  • Recommendation: Continue to review and update laws and regulations to ensure they remain effective.

Establishment of CTRF

  • The Executive Decree No. 02-127 of April 7, 2002, established CTRF as an independent financial intelligence cell at the Ministry of Finance (MOF).
  • Recommendation: Ensure that CTRF has sufficient resources and authority to effectively perform its functions.

Supervisory Controls

  • Supervisory authorities issued AML/CFT controls to entities subject to their supervision.
  • Recommendation: Enhance risk-based supervision to ensure compliance with AML/CFT regulations.

Areas for Improvement

There are still areas where improvements can be made:

Risk Assessment

  • Algeria has not yet completed the National Risk Assessment (NRA) process.
  • Recommendation: Develop a comprehensive NRA to identify and assess ML/TF risks in the country.

Training and Capacity Building

  • There is a need for training and capacity-building programs for professionals in the FIU, supervisory authorities, and other relevant bodies.
  • Recommendation: Provide regular training and capacity-building programs to ensure that professionals have the necessary skills and knowledge.

By implementing these recommendations, Algeria can further strengthen its AML/CFT framework and reduce the risks of ML/TF in the country.