Algeria is facing intense scrutiny as it seeks to shed its reputation as a hub for money laundering and financial opacity.
On July 27, the government published a new law targeting money laundering and terrorist financing, aiming to secure Algeria’s removal from the Financial Action Task Force (FATF) grey list—a designation imposed in October 2024. Yet, the law’s effectiveness and sincerity remain hotly debated.
The legislation notably tightens oversight of non-profit organizations, now required to rigorously justify the origins of all funds under threat of criminal penalties.
While officially aimed at combating terrorist financing, critics warn that this measure risks further shrinking an already vulnerable civil society space, without addressing the larger illicit financial networks tied to powerful interests.
Cryptocurrencies are another focal point.
The new law criminalizes mining, possession, and use of digital currencies, reflecting the state’s determination to maintain strict control.
However, this hardline stance could stifle innovation and further isolate Algeria from global financial trends, all without guaranteeing improved traceability of funds—especially those flowing through informal channels or entrenched state networks.
Additional provisions increase scrutiny of professions considered at high risk for money laundering, including real estate agents, jewelers, art dealers, and financial intermediaries.
But with Algeria’s long-standing budgetary opacity and lack of independent watchdogs, enforcement risks being uneven—targeting minor actors while leaving powerful beneficiaries of the rentier system untouched.
This legislative push follows Algeria’s recent addition by the European Union to its list of high-risk jurisdictions for money laundering in June.
Observers suggest the swift passage of the law serves more to protect Algeria’s international image than to signal a genuine commitment to reform.
Though the law mandates automatic asset freezes for individuals on UN terrorist lists, many fear such provisions may remain largely symbolic without substantive transparency and judicial action.
As Algeria grapples with entrenched corruption and impunity, questions linger over whether this new law marks a turning point—or merely another chapter in the country’s ongoing struggle with financial malpractice.
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