Regulatory Alerts2023-12-04
Instruction No. 02 of 2023, dated 4 December 2023, on the obligations of financial institutions regarding anti-money laundering, counter-terrorist financing, and countering proliferation financing
The Financial Intelligence Processing Unit of Algeria’s Ministry of Finance issued this instruction to establish comprehensive anti-money laundering (AML), counter-terrorist financing (CFT), and countering proliferation financing (CPF) obligations for financial institutions. It mandates a risk-based approach requiring obligated entities to implement written prevention programs, conduct regular risk assessments, and apply enhanced or simplified customer due diligence measures based on client type, transaction thresholds, and risk profiles. The directive further standardizes identification procedures for natural and legal persons, defines beneficial owners and politically exposed persons, and sets specific compliance protocols for insurance entities, reporting mechanisms, and ongoing client data management.