Algeria is a founding member of the Middle East and North Africa Financial Action Task Force (MENAFATF) which is an associate member of the Financial Action Task Force (FATF). Members of the MENAFATF signed a Memorandum of Understanding (MoU) in 2004 whereby they pledged to adopt and implement the FATF's recommendations on Anti-Money Laundering and Combating the Financing of Terrorism. Moreover, in its 2006 annual report the MENAFATF states that all accession countries must adopt the FATF Forty Plus Nine Recommendations and Special Recommendations. In its 2007 International Narcotics Control Strategy Report, the U.S. Department of State acknowledges the important progress achieved in Algeria's statutory regime over the past few years. On February 5, 2005, Algeria enacted a new Law on the Prevention and Fight against Money Laundering and Financing of Terrorism, replacing the 1994 Ordinance No. 95/11, to bring Algerian law into conformity with international standards and conventions. An independent Financial Intelligence Unit - the Cellule du Traitement du Renseignement Financier (CTRF), within the Ministry of Finance - was established in April 2002 under Executive Order No. 02-127.

General Overview

In its 2000 Report on the Observance of Standards and Codes (ROSC) on banking supervision, the International Monetary Fund (IMF) recommended adopting the Financial Action Task Force's (FATF) principles on money laundering. According to a subsequent 2004 IMF assessment, there was lack of practical arrangements requiring banks to conduct supervision of money laundering issues. The 2004 IMF report recommended adopting regulations establishing banks' obligations under existing legal provisions. On February 5, 2005, Algeria enacted a new law on anti-money laundering (AML) and combating the financing of terrorism (CFT). This is the Law on the Prevention and Fight against Money Laundering and Financing of Terrorism, which replaced the 1994 Ordinance No. 95/11 on criminalizing the financing of terrorism. According to the 2007 U.S. Department of State (DoS) report, this new law was introduced to bring Algerian law into conformity with international standards and conventions. Per the same report, the new law offers guidance for anti-money laundering and combating the financing of terrorism issues, institutional and judicial cooperation, and penal provisions.

On April 7, 2002, according to the 2007 U.S. DoS report, the Government of Algeria adopted Executive Order No. 02/127. This established an independent Financial Intelligence Unit (FIU), the Cellule du Traitement du Renseignement Financier (CTRF), within the Ministry of Finance. Algerian financial institutions and customs and tax administration agents are required to submit to the CTRF all suspicious transaction reports (STRs) related to money laundering and financing of terrorism, and comply with any CTRF inquiries. The new AML/CFT legislation further strengthens the powers of the CTRF, and extends money laundering control to non-bank financial institutions, including insurance agents, lawyers, accountants, stockbrokers, pension managers, and dealers of precious metals and antiquities. The new law also provides the Banking Commission (CB) - the independent supervisory body under the Bank of Algeria - with the authority to inform the CTRF of suspicious or complex transactions and exchange information with foreign government counterparts.

On November 30, 2004, Algeria became a founding member of the Middle East and North Africa Financial Action Task Force (MENAFATF), which promotes AML/CFT measures in the MENA region. During the same period, the fourteen founding member countries of MENAFATF signed a Memorandum of Understanding (MoU) where they "pledge to adopt, and implement the objectives of the FATF recommendations." According to the 2006 MENAFATF Second Annual Report published in 2007, one of the main criteria for MENAFATF membership accession is the adoption of the FATF Forty Plus Nine Recommendations on AML/CFT. Algeria is also a party to the 1988 United Nations (UN) Drug Convention, the UN Convention against Transnational Organized Crime, and the UN Convention for the Suppression of the Financing of Terrorism, as noted in the 2007 U.S. DoS report. Furthermore, Algeria has ratified various UN, Arab, and African conventions against terrorism, trafficking in persons, and organized crime.

In its 2007 report, the U.S. DoS acknowledges the important progress achieved in Algeria's statutory regime over the past few years. However, only 15 STRs were investigated by the CTRF during 2006. The U.S. DoS report recommends implementing the newly adopted laws, limiting the size of cash transactions, and empowering the CTRF to eliminate bureaucratic barriers. It also advises training Algerian law enforcement and customs authorities in investigating criminal activities related to money laundering and terrorist financing.

The Principles

1. Legal Systems and Related Institutional Measures

II

In its 2000 ROSC on banking supervision, the IMF recommended adopting the FATF's recommendations on money laundering. According to a subsequent 2004 IMF assessment, there were no practical arrangements requiring banks to supervise money laundering issues. The 2004 IMF report recommended adopting regulations establishing banks' obligations under existing legal provisions. On February 5, 2005, Algeria enacted a new AML/CFT law. This is the Law on the Prevention and Fight against Money Laundering and Financing of Terrorism, which replaced the 1994 Ordinance No. 95/11on criminalizing the financing of terrorism. According to the 2007 U.S. DoS report, this new law was introduced to bring Algerian law into conformity with international standards and conventions. Per the same report, the new Law offers guidance for AML/CFT issues, institutional and judicial cooperation, and penal provisions. However, the information provided above does not directly address Algeria's compliance with the FATF recommendations relating to this principle.

On April 7, 2002, according to the 2007 U.S. DoS report, the Government of Algeria adopted Executive Order No. 02/127, thus establishing the CTRF, Algeria's FIU, within the Ministry of Finance. Algerian financial institutions and customs and tax administration agents are required to submit to the CTRF all STRs related to money laundering and financing of terrorism, and comply with any CTRF inquiries. The new AML/CFT legislation further strengthens the powers of the CTRF and extends money laundering control to non-bank financial institutions, including insurance agents, lawyers, accountants, stockbrokers, pension managers, and dealers of precious metals and antiquities. The new Law also provides the CB with the authority to inform the CTRF of suspicious or complex transaction and exchange information with foreign government counterparts.

2. Preventive Measures - Financial Institutions

II

According to the 2007 U.S. DoS report, Algerian financial institutions, as well as customs and tax administration agents, are required to submit to the CTRF all STRs related to money laundering and financing of terrorism and comply with any CTRF inquiries. Nevertheless, there is little information publicly available addressing Algeria's compliance with the FATF recommendations relating to this principle.

3. Preventive Measures - Designated non-Financial Business and Professions

II

The new AML/CFT legislation strengthens the powers of the CTRF, as noted in the 2007 U.S. DoS report. It extends money laundering control to non-bank financial institutions, including insurance agents, lawyers, accountants, stockbrokers, pension managers, and dealers of precious metals and antiquities. Nevertheless, there is little information publicly available addressing Algeria's compliance with the FATF recommendations relating to this principle.

4. Legal Person and Arrangements & Non-Profit Organizations

II

There is insufficient information publicly available addressing Algeria's compliance with this principle.

5. National and International Co-operation

II

There is little information publicly available addressing Algeria's compliance with the FATF recommendations relating to this principle. According to the 2007 U.S. DoS report, the new legislation provides the CB with the authority to inform the CTRF of suspicious or complex transaction and exchange information with foreign government counterparts. On November 30, 2004, per the same report, Algeria became a member of the MENAFATF, which promotes AML/CFT measures in the MENA region. Algeria is also a party to the 1988 UN Drug Convention, the UN Convention against Transnational Organized Crime, and the UN Convention for the Suppression of the Financing of Terrorism. Furthermore, Algeria has ratified various UN, Arab, and African conventions against terrorism, trafficking in persons, and organized crime, as noted in the 2007 U.S. DoS report.