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 2025. According to that Evaluation, Algeria was deemed Compliant for 2 and Largely Compliant for 18 of the FATF 40 Recommendations. It remains 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 a notable prevalence of human trafficking, arms trafficking, and a substantial counterfeit market. Despite the government's efforts to combat corruption through the establishment of various anti-corruption bodies and legislation, issues such as state-embedded corruption and a large informal economy continue to undermine these initiatives, leading to a lack of effective institutional reforms and transparency.

Algeria's economy, heavily reliant on state enterprises and hydrocarbon production, presents a mixed landscape for foreign investment, characterized by both opportunities and challenges. While the government actively encourages foreign direct investment (FDI) in sectors such as agriculture, renewable energy, and healthcare, the business environment is complicated by regulatory uncertainties, protectionist policies, and a preference for local over foreign firms. Despite the potential for growth, foreign investors face hurdles including bureaucratic inefficiencies, shifting regulations, and the 51/49 ownership requirement in strategic sectors, which can deter smaller enterprises and complicate market access.