Monetary and Banking Law No. 23-09 of June 21, 2023

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Loi n° 23-09 du 3 Dhou El Hidja 1444 correspondant au 21 juin 2023 portant Loi monétaire et bancaire République algérienne démocratique et populaire

Law No. 23-09 of 3 Dhou El Hidja 1444 corresponding to June 21, 2023 Enacting the Monetary and Banking Law People's Democratic Republic of Algeria

Law No. 23-09 of June 21, 2023 Enacting the Monetary and Banking Law

TITLE I ON CURRENCY From Article 1 to Article 8 TITLE II STRUCTURE, ORGANIZATION AND OPERATIONS OF THE BANK OF ALGERIA Chapter 1 General Provisions From Article 9 to Article 12 Chapter 2 Management and Supervision of the Bank of Algeria Section 1 Direction of the Bank of Algeria From Article 13 to Article 20 Section 2 Administration of the Bank of Algeria From Article 21 to Article 28 Section 3 Surveillance and Control of the Bank of Algeria by the Censorate From Article 29 to Article 30 Section 4 Annual Accounts and Publications From Article 31 to Article 34 TITLE III POWERS AND OPERATIONS OF THE BANK OF ALGERIA Chapter 1 General Powers From Article 35 to Article 39 Chapter 2 Currency Issuance Article 40

Chapter 3 Operations and Emergency Liquidity Provision Section 1 Gold Operations and Foreign Exchange Reserve Management From Article 41 to Article 42 Section 2 Monetary Policy Operations From Article 43 to Article 46 Section 3 Emergency Liquidity Provision Article 47 Section 4 Operations with the State, Public Bodies and Central Banks From Article 48 to Article 54 Section 5 Investment Operations From Article 55 to Article 56 Section 6 Other Operations Article 57 Chapter 4 Security of Payment Systems and Means From Article 58 to Article 60 TITLE IV THE MONETARY AND BANKING COUNCIL Chapter 1 Composition of the Monetary and Banking Council From Article 61 to Article 63 Chapter 2 Powers of the Council From Article 64 to Article 67 TITLE V BANKING ORGANIZATION Chapter 1 Definitions From Article 68 to Article 74 Chapter 2 Operations From Article 75 to Article 82

Chapter 3 Prohibitions From Article 83 to Article 88 Chapter 4 Authorization and Approval From Article 89 to Article 104 Chapter 5 Organization of the Profession Article 105 TITLE VI SUPERVISION OF BANKS, FINANCIAL INSTITUTIONS AND OTHER OBLIGATED ENTITIES Chapter 1 Governance and Internal Control - Risk Central - Depositor Protection From Article 106 to Article 110 Chapter 2 Statutory Auditors and Related-Party Agreements Section 1 Statutory Auditors From Article 111 to Article 113 Section 2 Accounting Obligations Article 114 Section 3 Related-Party Agreements Article 115 Chapter 3 Banking Commission From Article 116 to Article 132 Chapter 4 Professional Secrecy Article 133 Chapter 5 Deposit Guarantee Article 134 Chapter 6 Miscellaneous Provisions From Article 135 to Article 142

TITLE VII FOREIGN EXCHANGE AND CAPITAL MOVEMENTS From Article 143 to Article 149 TITLE VIII CRIMINAL SANCTIONS From Article 150 to Article 154 TITLE IX THE COMMITTEES Chapter 1 The Financial Stability Committee From Article 155 to Article 162 Chapter 2 The National Payments Committee From Article 163 to Article 167

Law No. 23-09 of June 21, 2023 Enacting the Monetary and Banking Law The President of the Republic,

• Having regard to the Constitution, particularly Articles 139-15, 143 and 225;
• Having regard to Organic Law No. 18-15 of 22 Dhou El Hidja 1439 corresponding to September 2, 2018, amended and supplemented, relating to finance laws, particularly Article 9;
• Having regard to Organic Law No. 22-10 of 9 Dhou El Kaâda 1443 corresponding to June 9, 2022 relating to judicial organization;
• Having regard to Law No. 62-144 of December 13, 1962 establishing and fixing the statutes of the Bank of Algeria;
• Having regard to Ordinance No. 66-155 of June 8, 1966, amended and supplemented, establishing the Code of Criminal Procedure;
• Having regard to Ordinance No. 75-58 of September 26, 1975, amended and supplemented, establishing the Civil Code;
• Having regard to Ordinance No. 75-59 of September 26, 1975, amended and supplemented, establishing the Commercial Code;
• Having regard to Ordinance No. 03-11 of 27 Joumada Ethania 1424 corresponding to August 26, 2003, amended and supplemented, relating to currency and credit;
• Having regard to Law No. 05-01 of 27 Dhou El Hidja 1425 corresponding to February 6, 2005, amended and supplemented, relating to the prevention and fight against money laundering and terrorist financing;
• Having regard to Law No. 07-11 of 15 Dhou El Kaâda 1428 corresponding to November 25, 2007 establishing the financial accounting system;
• Having regard to Law No. 08-09 of 18 Safar 1429 corresponding to February 25, 2008, amended and supplemented, establishing the Code of Civil and Administrative Procedure;
• Having regard to Law No. 10-01 of 16 Rajab 1431 corresponding to June 29, 2010, amended, relating to the professions of chartered accountant, statutory auditor and certified accountant;
• Having regard to Law No. 15-04 of 11 Rabie Ethani 1436 corresponding to February 1, 2015 fixing the general rules relating to electronic signatures and certification;
• Having regard to Law No. 18-04 of 24 Chaâbane 1439 corresponding to May 10, 2018 fixing the general rules relating to postal services and electronic communications;
• Having regard to Law No. 18-05 of 24 Chaâbane 1439 corresponding to May 10, 2018 relating to electronic commerce;
• Having regard to Law No. 20-07 of 12 Chaoual 1441 corresponding to June 4, 2020 establishing a supplementary finance law for 2020;
• Having regard to Law No. 21-16 of 25 Joumada El Oula 1443 corresponding to December 30, 2021 establishing the finance law for 2022; After opinion of the Council of State; After adoption by Parliament; Promulgates the law whose text follows:

TITLE I ON CURRENCY Article 1. — The monetary unit of the People's Democratic Republic of Algeria is the Algerian dinar, abbreviated DA. The Algerian dinar (DA) is divided into one hundred equal parts called centimes, abbreviated CTS. Art. 2. — Fiduciary money in its material form consists of banknotes and metallic coins. It may take a digital form, denominated Central Bank Digital Currency (Algerian Dinar Digital). The privilege to issue fiduciary money within the national territory belongs to the State. The exercise of this privilege is delegated exclusively to the central bank, hereinafter referred to in relations with third parties as the "Bank of Algeria", which is governed by the provisions of this law. Art. 3. — Determined by regulations issued in accordance with the provisions of this law are: — the issuance of banknotes and metallic coins; — the identifying features of banknotes or metallic coins, particularly their face value, dimensions, type and other characteristics; — the conditions and procedures for controlling the manufacturing and destruction of banknotes and metallic coins; — the conditions for the issuance and development of central bank digital currency; — the management and control rules for central bank digital currency. Art. 4. — Banknotes, metallic coins and central bank digital currency issued by the Bank of Algeria alone have legal tender status to the exclusion of all others. They carry unlimited discharge power. Art. 5. — Banknotes and metallic coins subject to a withdrawal from circulation measure lose their discharge power if not presented for exchange within a maximum period of ten (10) years, from the date of the withdrawal decision. Their counter-value is then acquired by the Public Treasury. Art. 6. — No opposition may be served on the Bank of Algeria in case of loss, theft, destruction or seizure of banknotes or metallic coins issued by it. Art. 7. — It is prohibited to anyone to issue, circulate or accept: — any instrument denominated in Algerian dinars intended to serve as a means of payment instead of the national currency; — any interest-free bearer obligation at sight, even denominated in foreign currency. Art. 8. — Counterfeiting and/or falsification of banknotes or metallic coins issued by the Bank of Algeria or any other legal foreign monetary authority, as well as the introduction, use, sale, distribution and circulation of such counterfeited and/or falsified banknotes or coins, are prohibited.

TITLE I ON CURRENCY

TITLE II STRUCTURE, ORGANIZATION AND OPERATIONS OF THE BANK OF ALGERIA Chapter 1 General Provisions Art. 9. — A national establishment endowed with legal personality and financial autonomy, the Bank of Algeria is deemed a commercial entity in its relations with third parties. It is governed by commercial legislation to the extent not derogated from by the provisions of this law. It follows commercial accounting rules. It is subject neither to public accounting prescriptions nor to the control of the Court of Audit. It is not subject to commercial register inscription obligations. Art. 10. — The capital of the Bank of Algeria is entirely subscribed by the State. Art. 11. — The headquarters of the Bank of Algeria is located in Algiers. The Bank establishes branches or agencies in all wilayas and localities where it deems necessary. The State ensures the security and protection of the Bank's structures and provides, free of charge, the necessary escorts for the security of fund or value transfers. Art. 12. — The dissolution of the Bank of Algeria may only be pronounced by a law, which sets out its liquidation procedures. Chapter 2 Management and Supervision of the Bank of Algeria Section 1 Direction of the Bank of Algeria Art. 13. — The management of the Bank of Algeria is ensured by a Governor assisted by three (3) Vice-Governors. They are appointed by presidential decree for a term of five (5) years. The mandate of the Governor and Vice-Governors is renewable once. In case of duly established incapacity or gross misconduct, their functions are terminated in the same forms. In case of duly established incapacity of the Governor or gross misconduct, one of his Vice-Governors replaces him in his functions until the appointment of a new Governor. Art. 14. — The Governor and Vice-Governors must take an oath before the competent courts, whose central headquarters fall under their jurisdiction, according to the following formula: Art. 15. — The functions of Governor and Vice-Governors are incompatible with any elected office, government position or public function. Except for representing the State before international monetary, financial or economic institutions, the Governor and Vice-Governors may not, during their mandate, exercise any activity, profession or function. They may not borrow any amount from any institution, Algerian or foreign, and no commitment bearing their signature may be admitted to the portfolio of the Bank of Algeria, nor to that of any institution operating in Algeria. Art. 16. — The salary of the Governor and Vice-Governors is fixed by executive decree. They are borne by the Bank of Algeria. At the end of their term, except in case of dismissal for gross misconduct, the Governor and Vice-Governors or, possibly, their heirs receive an allowance equal to two (2) years' salary, borne by the Bank of Algeria, excluding any other amount paid by it. During a two (2) year period after the end of their mandate, the Governor and Vice-Governors may neither manage nor work for an establishment subject to the authority or control of the Bank of Algeria, or a company dominated by such an establishment, nor serve as agents or advisors to such establishments or companies. Art. 17. — The Governor ensures the management of the Bank's affairs. The Governor, hereinafter "Governor", takes all execution measures and performs all acts within the framework of the law. He signs, on behalf of the Bank of Algeria, all agreements, annual reports, balance sheets and income statements. He represents the Bank before public authorities in Algeria, foreign central banks, international financial organizations and, generally, before third parties. Legal actions are brought and defended at his request and supervision. He takes all conservation measures he deems useful. He commits the Bank in all civil acts and before courts. He proceeds to authorized real estate acquisitions and disposals. He organizes the Bank's services and defines their tasks. He recruits, appoints, promotes, dismisses and removes Bank agents, under the conditions provided by the personnel statute. He designates the Bank's representatives on the boards of other institutions, where such representation is provided for. Art. 18. — When the situation of a bank or financial institution requires justified financial support, the Governor invites its main shareholders to provide the necessary financial resources. The Governor may also organize the support of all banks and financial institutions to take necessary measures to protect depositors' and third parties' interests, ensure the proper functioning of the banking system and preserve the reputation of the financial center. Art. 19. — The Governor determines the duties of each Vice-Governor and specifies his powers. He may delegate signature to Bank agents. For service needs, he may constitute special proxies among the Bank's senior management. Art. 20. — Except in cases of proven fraud or gross misconduct, Bank agents and any person acting under the authority of the Bank or the Banking Commission, in fulfilling their missions defined in this law, incur no civil liability for the exercise of their duties. Section 2 Administration of the Bank of Algeria Art. 21. — The Bank is administered by a Board of Directors, invested with the following powers: — it deliberates on the general organization of the Bank and the opening or closure of agencies and branches; — it adopts regulations applicable to the Bank; — it approves the personnel statute and remuneration scheme for Bank agents; — it deliberates, at the Governor's initiative, on all agreements; — it rules on real estate acquisitions and disposals; — it decides on the advisability of legal actions to be brought in the Bank's name and authorizes compromises and settlements; — it adopts the Bank's annual budget; — it determines the conditions and form in which the Bank establishes and adopts its accounts; — it approves the distribution of profits and the draft annual report submitted by the Governor within three (3) months after each accounting year's close to the President of the Republic; — it is informed of all matters concerning the Bank's management. Art. 22. — The Board of Directors is composed of: — the Governor, President; — the Vice-Governors; — four (4) senior-ranking civil servants, designated by presidential decree for their expertise in economic and financial matters. In case of absence or vacancy, civil servants are replaced by alternates designated under the same conditions. Art. 23. — In exercising their mandate as Board members, civil servants and their alternates sit ex officio. Art. 24. — The Board determines the attendance fees for its members, as well as the conditions under which the eventual travel and accommodation expenses of the four (4) civil servants are reimbursed. Art. 25. — The Governor convenes and chairs the Board of Directors and sets the agenda for its sessions. In his absence, a Vice-Governor chairs the session. The Board meets upon presidential convocation as often as necessary. It is convened if four members request it. Art. 26. — The Board adopts its internal regulations at its first meeting. Art. 27. — Board meetings are valid only in the presence of at least five members. No member may give a proxy to be represented. Decisions are taken by simple majority of the votes of present members; in case of a tie, the President's vote is decisive. Art. 28. — Without prejudice to legal obligations, and except when called to testify in criminal matters, Board members may not disclose directly or indirectly facts or information known within their mandate. The same obligation applies to any person the Board consults for mission execution. Section 3 Surveillance and Control of the Bank of Algeria by the Censorate Art. 29. — The Bank's supervision is ensured by a Censorate composed of two censors appointed by presidential decree. The two censors work full-time on secondment from their original administration. Their functions end in the same forms. The two censors must possess financial and central bank accounting knowledge enabling them to perform their mission. Their remuneration modalities are fixed by regulation. The Censorate's organization and human/material resources are defined by the Board of Directors. Art. 30. — Censors exercise general supervision over all Bank services and operations. They exercise particular supervision over the risk central, the defaults central, and the organization and functioning of the money market. Censors may operate, jointly or separately, verifications or controls they deem appropriate. They attend Board sessions with advisory voice. They inform the Board of control results. They may submit to the Board any proposals or remarks they deem useful. If their proposals are not adopted, they may request transcription in the deliberations register. They inform the Minister in charge of Finance. They report to the Board on year-end account verifications and any proposed amendments. They also submit a report to the Finance Minister within four (4) months of year-end; a copy is communicated to the Governor. The Finance Minister may request reports at any time on determined questions within their competence. Section 4 Annual Accounts and Publications Art. 31. — The Bank's accounts are closed on December 31 each year. Net income after all amortizations, charges and provisions constitutes annual profits. From these profits, ten percent (10%) is obligatorily allocated to the legal reserve up to an amount equal to capital. After establishing provisions deemed necessary by the Board, capped at three (3) times capital and other general/special reserves, the balance is paid to the Public Treasury. The Board may also decide to pay the entire remaining balance after the mandatory deduction to the Treasury. Reserves may be allocated to capital increases. Art. 32. — If the Bank's December 31 accounts show a loss, it is amortized by imputation on general or special reserves and, if necessary, on the legal reserve. If these reserves do not fully amortize the loss, the remaining balance is covered by the Public Treasury within three (3) months from the approval of closing accounts. Art. 33. — The Bank publishes an annual report on its activities, particularly in monetary policy, banking supervision and financial stability contribution. The Governor submits this report by the end of the first semester of the following year to the President of the Republic and the Prime Minister or Head of Government. This report, containing elements necessary for a good understanding of monetary policy, is obligatorily communicated to both chambers of Parliament followed by a debate. Art. 34. — The Bank submits to the Finance Minister its monthly account statements, published in the Official Journal of the People's Democratic Republic of Algeria.

TITLE III POWERS AND OPERATIONS OF THE BANK OF ALGERIA Chapter 1 General Powers Art. 35. — The Bank's mission is to ensure price stability as the objective of monetary policy, and to create and maintain, in the fields of currency, credit and foreign exchange, the most favorable conditions for sustained economic development, while ensuring monetary and financial stability. To this end, it is responsible for regulating currency circulation, directing and controlling credit distribution by all appropriate means, regulating liquidity, ensuring proper management of financial commitments to foreign entities, regulating the foreign exchange market and ensuring the security and solidity of the banking system. Art. 36. — The Bank prescribes facilitation measures for the of...