The European Union has officially placed Algeria on its financial blacklist, citing the country as a high-risk jurisdiction for money laundering and terrorist financing.
The move, guided by the recommendations of the Financial Action Task Force (FATF), significantly raises the level of scrutiny required for financial transactions involving Algerian entities and marks a diplomatic blow for Algiers at a time of growing international tension.
The designation compels European financial institutions to apply enhanced due diligence to any dealings with Algeria. EU companies, particularly in the banking and trade sectors, are now expected
to reassess their financial commitments to the country, which is increasingly being perceived as a risky business environment.
The announcement comes just a day after the United States imposed a 30% tariff on Algerian exports, accusing the North African country of contributing to an “unsustainable” trade imbalance and violating the norms of economic transparency.
The back-to-back sanctions from Washington and Brussels underscore the growing international unease with Algeria’s financial governance.
According to the FATF, Algeria’s financial system suffers from critical deficiencies. Key concerns include entrenched banking secrecy, weak regulatory enforcement, and poor cooperation with global anti-financial crime bodies.
Despite repeated warnings and international pressure, Algerian authorities have failed to implement the structural reforms needed to align with global standards.
In response, the Algerian government issued a formal diplomatic protest but stopped short of announcing any corrective measures.
Analysts say the silence reflects Algiers’ insistence on preserving its economic sovereignty, a position that increasingly clashes with the norms of global financial integration.
Beyond the economic impact, the EU’s decision also risks tarnishing Algeria’s regional ambitions. The country has long sought a leadership role in African and South-South cooperation frameworks, championing a multilateral order less dependent on Western influence.
This blacklisting, however, may weaken its standing in both continental diplomacy and multilateral forums.
For now, the absence of a clear compliance roadmap suggests that Algeria may be bracing for a prolonged period of financial isolation and strained relations with its major economic partners.
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