European Commission Adds Algeria to High-Risk Money Laundering List

The European Commission has classified Algeria as a high-risk country for money laundering, following recommendations from the Financial Action Task Force (FATF). The move was announced in early June 2025 and includes other nations like Lebanon and Kenya. The decision aims to protect the EU financial system and intensify pressure on Algeria to accelerate financial reforms.

In its latest update of jurisdictions under increased scrutiny, the European Union has included Algeria on its blacklist of countries with strategic deficiencies in anti-money laundering and counter-terrorist financing. The list also names Monaco, Angola, Ivory Coast, Laos, Namibia, Nepal, and Venezuela. In contrast, countries such as the United Arab Emirates, Senegal, the Philippines, Panama, Barbados, and Jamaica have been removed from the list after progress was noted.

This decision follows Algeria’s placement on FATF’s grey list, which flagged "structural weaknesses" in its financial oversight. The FATF, an international watchdog based in Paris, sets global standards for combating money laundering and terrorist financing.

European Commissioner for Financial Services, Maria Luís Albuquerque, stated:

“This update confirms our firm commitment to complying with international standards, in particular those established by the FATF.”

In response to earlier warnings, Algeria has adopted a series of reforms. During a 2024 cabinet meeting, President Abdelmadjid Tebboune directed his government to expedite the implementation of FATF-aligned measures. These include:

• Mandatory banking channels for all real estate and commercial transactions, enforced by the 2025 Finance Law.

• Harsher penalties of up to 10 years in prison for offenses tied to money laundering and terrorism financing.

• A national anti-illicit flow strategy, coordinated by the Ministry of Finance, to enhance financial transparency and risk detection.

  
  

While Algeria has taken steps to address FATF concerns, its addition to the EU’s blacklist reflects the need for deeper institutional reforms. The designation carries diplomatic and economic consequences, including potential obstacles for Algerian entities operating within the EU. Nonetheless, it may also serve as a catalyst for sustained efforts toward regulatory compliance and international cooperation.