Algeria Country Summary

FATF Status

Algeria is on the FATF List of Countries that have been identified as having strategic AML deficiencies

Compliance with FATF Recommendations

The last follow-up Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Algeria was undertaken in 2024. According to that Evaluation, Algeria was deemed Compliant for 2 and Largely Compliant for 14 of the FATF 40 Recommendations. It was deemed Highly Effective for 0 and Substantially Effective 2 with regard to the 11 areas of Effectiveness of its AML/CFT Regime.

Algeria faces significant challenges related to crime and corruption, with various forms of illicit activities, including human trafficking, arms trafficking, and drug smuggling, prevalent in the country. While the government has established anti-corruption bodies and laws, the effectiveness of these measures is undermined by pervasive state-embedded corruption and a large informal economy, which complicate efforts to combat organized crime and enhance transparency.

Algeria's economy is predominantly state-controlled, with significant challenges for foreign businesses, particularly from the U.S., although there are promising opportunities in sectors such as agriculture, information technology, and renewable energy. The hydrocarbon sector remains the backbone of the economy, contributing heavily to export revenues and government income, yet rising domestic energy needs and underinvestment pose risks to export growth. While the government seeks to attract foreign direct investment through various incentives and regulatory frameworks, a complex and often inconsistent regulatory environment, along with protectionist policies, creates hurdles for international investors looking to navigate the Algerian market.