Algeria has just been placed on the FATF (Financial Action Task Force) grey list due to concerns regarding its framework for combating money laundering and terrorist financing.
The strong influence of the military, currently under the control of General Saïd Chengriha over civilian institutions, has cast doubt on the separation of powers and governance in the country, which are essential elements for establishing a healthy economic environment.
The lack of transparency in many transactions, especially those involving state-owned enterprises or military contracts, facilitates illicit activities.
The situation regarding terrorist financing is particularly concerning, especially given that the Sahel-Saharan region is currently plagued by serious tensions and often deadly conflicts. In this context, the FATF has reason to believe that the Algerian regime is trying to obscure these funding sources.
This listing indicates that the country has not yet implemented all the recommended measures to strengthen its financial system and comply with international standards, raising concerns both economically and in terms of governance. This situation has significant repercussions, particularly due to the predominant role of the military in the country’s politics and economy.
Historically, the Algerian military has been a key player influencing economic policy and government decisions since the country’s independence in 1962. This omnipresence has led to opaque practices, making it difficult to trace financial flows and increasing the risk of money laundering.
Although Algeria claims to have adopted laws to combat money laundering and terrorist financing, gaps remain in their scope and enforcement. Legislation must be continuously updated to meet international standards.
Financial institutions, including banks and insurance companies, need to have internal control systems to detect and report suspicious transactions.
Deficiencies in the exchange of information between Algerian security services and their foreign counterparts limit the effectiveness of efforts to combat terrorist financing.