The European Commission has placed the Algerian government on its list of “high-risk countries” subject to increased scrutiny over financial corruption. While Algeria has suggested that France may have influenced the EU decision due to ongoing political tensions between the two countries, the government has pledged to exit the Financial Action Task Force (FATF) “grey list”—which includes countries “less engaged” in combating money laundering and terrorist financing—by early 2026.
The Algerian government held a cabinet meeting dedicated to reviewing and amending legislation related to combating money laundering and terrorism financing, sending an early message to the European Union signaling its intent to accelerate the process of exiting the recently assigned blacklisting.
This move reflects an acknowledgment of shortcomings in the current system and a desire for a swift exit from the classification.
Negative International Ratings for Algeria:
Finance Minister Abdelkrim Boulzard has faced parliamentary criticism over Algeria’s negative international ratings concerning the effectiveness of its financial system in fighting corruption and its adherence to financial transparency and anti-money laundering standards.
Ahmed Rebhi, an MP from the National Liberation Front, directly addressed the minister, saying the government “did not pay attention to repeated warnings from MPs regarding the country’s unfavorable international ratings related to monitoring suspicious financial activities.” He described Algeria’s inclusion on the FATF’s “grey list” as “shameful,” noting that the list includes countries with limited legal and material capacity to counter money laundering. Rebhi questioned the government’s readiness to implement measures in line with international FATF standards.
Steps to Exit the Grey List:
In response, Minister Boulzard stated that the government “has made great efforts to avoid international indicators linked to low compliance with anti-money laundering standards, especially since the ‘Black Decade’ of the 1990s,” when Algeria faced terrorist groups funded through suspicious means domestically and internationally.
Boulzard noted that Algeria joined FATF in 2003, and that the Luxembourg-based body concluded in 2010 that Algeria’s efforts to assess money laundering risks were insufficient. This led to its placement on the grey list in 2011. Algeria exited the list in 2016, only to be relisted in 2024. He emphasized, “We will exit the list again, but there’s always a chance of returning,” comparing money laundering to a thief always seeking a way in, regardless of precautions.
He added, “We are in the final stage of preparing a report, drafted by the National Committee for Risk Assessment and the Financial Intelligence Unit. We have addressed nearly all concerns and have completed about 95% of the required work. The report is expected to be finalized by the end of this month and submitted in late July.”
He also stated that Algeria will meet with FATF in Luxembourg in late September, followed by a general assembly in October to evaluate the country’s progress.
Algeria has intensified its efforts to exit FATF’s grey list by issuing a decree at the end of last year to strengthen its legal framework for combating money laundering, terrorism financing, and the proliferation of weapons of mass destruction.
The decree mandates the immediate freezing of funds linked to suspicious individuals or entities, imposes strict oversight on banks and non-financial professions, and requires prompt reporting of matches with sanctions lists. It also established a central authority to manage confiscated assets, limited the activities of sanctioned individuals (with humanitarian exceptions), and reduced compliance requirements from 74 to 13 points as part of Algeria’s plan to align its laws with FATF standards and regain foreign investor confidence.
Drying Up Sources of Corruption:
The central bank previously issued directives banning fake accounts and requiring financial institutions to take an active role in anti-money laundering efforts. Despite these measures, the European Commission announced on June 10, 2025, that Algeria was included in the “high-risk countries” list for money laundering, alongside Lebanon, Venezuela, and Kenya, in line with FATF classifications.
Algerian authorities, including President Abdelmadjid Tebboune, insist that their reforms are part of a “national plan” developed in coordination with FATF. They claim Algeria has made significant progress, as acknowledged by several international institutions, particularly regarding financial transparency and accurate economic data. The government also presents Algeria as a “model” in fighting corruption and recovering embezzled funds, especially those held in tax havens.
Observers now await more legislation to fight money laundering and terrorism financing and further strengthen the country’s legal and operational frameworks to enable a swift exit from the blacklisting—an action that imposes strict financial scrutiny and harms Algeria’s international financial and economic image.
Implicit Accusations Against Paris:
There have been implicit accusations against France for influencing the EU decision, linked to political score-settling amid an ongoing crisis between the two countries. Critics pointed out the short timeline between Algeria’s inclusion on the grey list last year and its blacklisting this year, arguing that this did not provide sufficient time for the government to implement what it described as a comprehensive package of reforms.
Local media noted that while Brussels framed the decision as a technical move aligned with EU financial protection policy, political analysts and commentators questioned whether it overlooked Algeria’s substantial legislative and regulatory progress, hinting at underlying political motives.
The European Union recently updated its list of “high-risk countries” in the fight against money laundering, including Algeria among others. The classification obliges European financial institutions to impose strict monitoring of financial transactions involving Algeria.
A well-informed source said that in anticipation of submitting its report to FATF at the end of June, Algeria is finalizing more legal texts to regain the legal initiative and avoid restrictions on access to global financial systems.
The source emphasized that the negative international classifications, especially the recent blacklisting, are deeply troubling to Algeria. While the decision may be shocking, it is not surprising, as it is viewed as part of coordinated harassment by known international adversaries aiming to pressure Algeria on various fronts.
New Legislation to Prevent Money Laundering and Terrorism Financing**
According to the private newspaper El Khabar, “Several legislative and regulatory measures were introduced this year to enhance national capabilities and adapt the legal framework for combating money laundering and terrorism financing. These include four guidance plans covering customer and beneficiary due diligence for real estate agents, self-assessment of money laundering and terrorism financing risks, asset freezing or seizure under targeted financial sanctions, and identifying and verifying beneficial owners in the real estate sector.”
The paper also mentioned reforms to notary laws, including new regulations on due diligence, supervision guidelines, and the identification of money laundering risks associated with the profession. These also require measures to identify and reduce risks, especially for civil and commercial companies.
Training programs for notarial auditors and inspectors are also being developed and implemented regularly, with progress reports and disciplinary actions for non-compliance. The legal framework for bailiffs has also been reformed, requiring them to report any transaction involving funds suspected to be linked to criminal activity or money laundering or terrorism financing—per recent anti-money laundering legislation passed in recent months.
Analysts believe that the situation demands serious government efforts to enhance transparency, strengthen regulatory oversight, and enact deep reforms in the banking sector—particularly regarding auditing, digitalization, increased oversight, and capacity-building for financial intelligence units, tax, and customs authorities. They also call for thorough investigations into wealth sources and the imposition of taxes on the wealthy.
An International Warning
Inclusion in the “grey list” does not necessarily mean that a country is directly involved in financial corruption. Rather, it is an international warning of systemic gaps that could undermine the economy and investor confidence. It places the country under close scrutiny as a potentially vulnerable environment for money laundering or terrorist financing unless rapid institutional and legal reforms are implemented.
In the Arab region, several countries have entered the list—some have exited, while others remain due to weak legislation, poor banking oversight, and political instability. This has added complexity to an already fragile regional financial landscape, heavily reliant on cross-border capital flows.
As of the latest FATF update in 2025, the following Arab countries are on the “grey list”: Algeria, Yemen, Syria, and Lebanon. In contrast, the UAE, Morocco, and Jordan exited the grey list after undertaking comprehensive reforms.
Being on the grey list is not a legal penalty but a regulatory signal indicating strategic deficiencies in a country’s anti-money laundering and terrorism financing framework. However, the repercussions can resemble sanctions, including reduced investor trust, tighter international banking controls, and higher transaction costs. The listing requires countries to implement an action plan under FATF supervision within a specified timeframe and serves as a global warning demanding urgent reform.
