Algeria has released a comprehensive map of money laundering and terrorism financing risks, covering hundreds of thousands of companies, associations, and foundations.
While the government frames this as a commitment to transparency and a step toward meeting international standards, critics argue the effort overlooks the very issues that plague the nation’s economy: widespread corruption and an enormous informal sector.
The initiative involved a massive mobilization of government bodies, including the National Center for the Commercial Register, the Bank of Algeria, and customs. The sheer scale of the project, which covered over 173,000 companies and nearly 15,000 foundations, is being touted as a proactive approach aligned with World Bank standards.
However, the report has drawn skepticism for its failure to address the nation’s massive informal economy, which some estimates place at up to 40% of GDP. This “gray area” is the primary channel for money laundering and tax evasion, yet the report only touches on it in passing.
Furthermore, the report’s risk classifications have raised questions. It labels limited liability companies as “moderate risk” while categorizing sole proprietorships, associations, and public enterprises as “low risk.” This approach seems to ignore how associations and foundations are often used for covert financing and appears to deliberately avoid scrutinizing the state-owned companies that have been at the center of recent high-profile corruption cases.
The effectiveness of this new system depends on the independence of its oversight bodies and the credibility of its judicial institutions. However, critics point out that Algeria’s justice system is often influenced by political interests, and its central bank lacks true autonomy.
The initiative is largely viewed as a public relations move designed to satisfy international watchdogs and avoid enhanced scrutiny from organizations like the Financial Action Task Force (FATF). While Algeria is attempting to project an image of a respectable economic player, many believe the gap remains wide between these official announcements and the reality of a rigid, opaque economic system. The report’s focus on transparency appears to mask the lack of fundamental structural reforms needed to address endemic corruption and bureaucracy.
MK/ac/fss/abj/APA