EU Adds Algeria to List of High-Risk Nations for Money Laundering and Terrorism Financing
The European Union has added Algeria to its list of high-risk countries for money laundering and terrorism financing, a decision announced on Tuesday, June 11, by the European Commission, also concerns nine other nations, including Lebanon, Venezuela, and Kenya. Meanwhile, the United Arab Emirates have been taken off this list. Brussels claims to be following the recommendations of the Financial Action Task Force (FATF), but this measure has sparked criticism, particularly in Algeria, where authorities assert that they have made significant progress?
The European Commission explains that this listing is based on the FATF's evaluations, the international organization responsible for combating money laundering. This approach is part of the EU's desire to toughen its regulatory framework against illicit financial flows.
An Unfair Measure, According to Algeria
However, on the Algerian side, this decision is poorly received. Authorities claim that the country is actively collaborating with the FATF and has multiplied reforms to conform to international standards. Legislation, for instance, provides for penalties of up to 10 years' imprisonment for money laundering or financing of terrorism. The 2025 finance law also introduces mandatory banking for certain transactions, notably in real estate. In May 2023, the FATF recognized Algeria's efforts through a mutual evaluation report. Since then, the number of pending recommendations has decreased from 74 to 13. Algeria has notably strengthened its surveillance system, international cooperation, and transparency on beneficial ownership.
Ongoing Reform Dynamic
A comprehensive report on the progress made will be presented by Algeria to the FATF at the end of the month. This document will highlight the national strategy for 2024-2026 and the actions of the National Risk Assessment Committee. The goal is to show that the country has reached a level of technical compliance sufficient to be removed from the grey list.
It is worth recalling that during the Council of Ministers on May 18, President Abdelmadjid Tebboune gave instructions to implement all FATF recommendations. A solid legal framework has already been put in place, including for the monitoring of non-profit organizations, without hindering their activities.
