Algeria Tightens Financial Controls: New AML/CTF Law Targets NGOs and Prohibits Cryptocurrencies
Algeria has implemented a significant new legal framework to combat money laundering and the financing of terrorism. This comprehensive legislation, which became effective on Sunday, July 27th, following its publication in the Official Gazette no. 48, marks a pivotal step in the nation’s efforts to enhance financial integrity. This move is particularly crucial as it directly addresses the recommendations put forth by the Financial Action Task Force (FATF), an intergovernmental organization that placed Algeria on its grey list in October last year. The new law is part of a series of measures taken by the North African country to rectify identified deficiencies and eventually be removed from this intensified monitoring list.
Stricter Oversight for Non-Profit Organizations and Cryptocurrency Prohibition
A key component of Algeria’s strengthened financial oversight involves imposing stringent controls on non-profit organizations (NPOs). Under the new law, any NGO engaged in the collection, reception, granting, or transfer of funds as part of its activities will now fall under rigorous “appropriate supervision” by the relevant regulatory, control, and/or supervisory authorities. Furthermore, these organizations are explicitly mandated to refuse any donations or subsidies whose origins are unclear or that are known to stem from illegal activities. Non-compliance with these regulations carries serious repercussions for those responsible, including potential imprisonment ranging from six months to two years, alongside substantial financial penalties. This enhanced scrutiny aims to prevent NPOs from being exploited for illicit financial flows, reinforcing the nation’s commitment to transparency. In a related measure to bolster financial security and maintain control over its monetary system, Algeria has also moved to prohibit the use of cryptocurrencies, signifying a cautious approach to emerging digital assets within its borders.
Algeria’s new anti-money laundering and counter-terrorist financing law represents a robust commitment to aligning its financial system with international standards. By tightening controls on non-profit organizations and taking a firm stance on cryptocurrencies, the Algerian government is demonstrating proactive steps to mitigate financial risks and combat illicit activities. These reforms are not only vital for safeguarding the national economy but also for improving Algeria’s standing in the global financial community and facilitating its removal from the FATF grey list, ultimately fostering a more secure and transparent financial environment across the region.
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