Bank of Albania (BOA)

The Financial Intelligence Processing Unit (CTR) issued Instruction No. 03 of 2023 to mandate that financial institutions and designated non-financial businesses implement risk-based due diligence procedures for Politically Exposed Persons (PEPs). Regulated entities must establish robust risk management systems, obtain competent authority approval before initiating or continuing PEP relationships, apply enhanced due diligence and strict monitoring, verify the origin of funds, and maintain detailed records. Additionally, entities must determine PEP status or beneficial ownership in life insurance contracts by claim payment, notify authorities before disbursement, conduct comprehensive relationship reviews, and file suspicious transaction reports when higher risks are identified.

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.

The President of the People's Democratic Republic of Algeria promulgated Monetary and Banking Law No. 23-09 on June 21, 2023, to restructure and modernize the nation's financial framework. The legislation establishes the Bank of Algeria as an autonomous commercial entity with exclusive currency issuance powers, introduces a Central Bank Digital Currency (Dinar Algérien Digital), and defines comprehensive governance, supervision, and operational mandates for monetary policy, banking oversight, and financial stability. It further codifies criminal sanctions, capital movement regulations, and specialized committees to ensure robust oversight of banks, financial institutions, and obligated entities.

The President of the Republic issued Ordinance No. 03-11 on August 26, 2003, to establish the comprehensive legal framework governing Algeria’s monetary system and credit operations. The legislation designates the Bank of Algeria as the exclusive issuer of fiduciary currency, grants it full financial and operational autonomy, and defines its executive governance, including the Governor’s powers and the Board of Directors’ oversight. It further codifies the Bank’s core mandates to regulate currency circulation, manage foreign exchange reserves, control credit distribution, and ensure monetary stability while granting specific fiscal exemptions and legal privileges.