AML Compliance in Algeria: A 2025 Guide for Fintechs and Regulated Businesses

Algeria is intensifying its Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) efforts to boost financial transparency. With a new AML/CFT law (tentatively Law No. 25-07, July 2025), increased international scrutiny, and sector-specific regulations, the country is aligning with global standards as part of its efforts to exit the FATF grey list and build investor confidence in the financial ecosystem. For fintechs, digital wallets, and startups, understanding these changes is critical to thrive in Algeria’s evolving financial landscape.

This guide outlines the latest regulatory developments, challenges, and compliance best practices for businesses in 2025.

Algeria’s AML Legal Framework: A New Era of Enforcement

The cornerstone of Algeria’s AML regime is Law No. 05-01 (2005), amended by a new law (tentatively Law No. 25-07, July 2025). The amendment strengthens penalties (e.g., fines up to DZD 10 million for non-compliance), expands enforcement to virtual assets, and enhances cooperation with international bodies like FATF and MENAFATF.

Financial institutions and designated non-financial businesses and professions (DNFBPs) must now:

• Implement Enhanced Due Diligence (EDD).
• Maintain customer records for at least five years.
• Report suspicious activities to the Financial Intelligence Processing Unit (CTRF).

Regulatory Bodies: CTRF, Bank of Algeria, and MENAFATF

Financial Intelligence Processing Unit (CTRF)

Operating under the Ministry of Finance, CTRF investigates suspicious transactions and collaborates globally to curb illicit financial flows.

Bank of Algeria

Under Regulation No. 24-03 (August 2024, pending official confirmation), the Bank of Algeria oversees AML/CFT for banks, Algeria Post, and virtual asset providers. Requirements include:

• Risk-based Customer Due Diligence (CDD).
• Transaction monitoring.
• Ownership structure verification.
• Controls on digital assets and anonymous transactions.

MENAFATF

As a FATF regional body, MENAFATF supports Algeria’s alignment with global standards.

FATF Status and International Scrutiny

Algeria remains on FATF’s grey list (increased monitoring) as of late 2024, with a target to address deficiencies by 2026. The May 2024 FATF report noted partial compliance with 14 of 40 recommendations, particularly in:

• Effectiveness of suspicious transaction investigations.
• Transparency of beneficial ownership registries.

Sector-Specific Guidelines and Risk Hotspots

In 2024–2025, CTRF issued guidelines for high-risk sectors:

• Notaries and accountants: Must implement internal AML controls.
• Real estate agents: Face scrutiny due to cash-based transactions.
• Precious metals/stones dealers: Require robust CDD.
• Insurance companies: Must screen for Politically Exposed Persons (PEPs) and profile customers.

Algeria’s informal economy (30–50% of GDP, per IMF estimates) fuels money laundering risks. High cash usage, fragmented identity data, and delays in CNRC company registration hinder KYC/KYB compliance.

Best Practices for Fintechs and Regulated Startups

Fintechs onboarding gig workers, digital traders, or cross-border users, as well as crypto platforms and mobility startups, must balance compliance with user experience. Key practices include:

• Verifying ownership structures.
• Using automated checks against global sanctions/PEP lists.
• Applying Enhanced Due Diligence (EDD) for high-risk clients.
• Maintaining digital audit trails for CTRF inspections.
• Partnering with compliance-focused vendors.

How VOVE ID Supports AML Compliance in Algeria

VOVE ID, a Morocco-based digital identity verification provider, empowers fintechs and startups across MENA and Africa. With AI-powered tools, VOVE ID helps businesses:

• Automate KYC/KYB: Verify identities and businesses using 3D liveness detection and checks of 2000+ document types from 190+ countries.
• Screen for Risks: Instantly check sanctions, PEPs, and adverse media in real time.
• Streamline Compliance: Meet CTRF and Bank of Algeria onboarding requirements with easy SDK/API integrations.
• Scale for Startups: Offers pay-as-you-go pricing and a “verify once, use everywhere” model for SMEs.

Backed by The Baobab Network and founded by experts from Timeless Investment, RemotPass, and Pipedrive, VOVE ID combines cutting-edge tech with regional expertise.

Looking Ahead: Opportunities and Obligations

Algeria’s AML reforms signal growing regulatory demands but also opportunities for compliant businesses. Tools like VOVE ID bridge the gap between complexity and efficiency, enabling startups to grow securely.