The directive’s aim is to expand scrutiny from basic identity checks to full risk profiling across customers, transactions and ownership structures, as regulators push banks and Algérie Poste to align with global anti-money laundering standards and close gaps that could expose the system to illicit flows, terrorism financing and sanctions risks in an increasingly interconnected financial landscape.
The Bank of Algeria has issued a new directive setting out stricter “know your customer” (KYC) requirements for banks, financial institutions and the financial services arm of Algérie Poste, as part of efforts to strengthen controls against illicit financial flows.
Directive No. 04-2026, signed by central bank governor Salah Eddine Taleb, implements provisions under Regulation No. 24-03 of July 2024, which governs the prevention of money laundering, terrorist financing and the financing of weapons proliferation.
The directive broadens the scope of customer due diligence, requiring financial institutions to apply identification and verification procedures not only to regular clients but also to occasional customers, proxies, legal representatives and beneficial owners, as well as any individuals acting on behalf of a customer.
Under the new rules, institutions must identify and verify customer identities before establishing a business relationship, throughout its duration and when conducting occasional transactions. The process must confirm key details including identity, address and, where applicable, the ownership structure behind accounts.
The directive also requires institutions to establish a customer profile and determine the purpose and nature of each relationship or transaction in order to assess risk levels.
Banks and other covered entities are permitted to apply stricter controls where necessary, depending on the nature of their activities, size and exposure to risk.
The measures reinforce a risk-based approach to compliance, requiring institutions to take into account factors such as customer type, products and services offered, distribution channels and geographic exposure when assessing potential risks.
Entities are required to identify, assess, understand and mitigate risks linked to money laundering, terrorist financing and the proliferation of weapons of mass destruction, aligning Algeria’s regulatory framework more closely with international standards on financial integrity.
Faustine Ngila is the AI Editor at Impact Newswire, based in Nairobi, Kenya. He is an award-winning journalist specializing in artificial intelligence, blockchain, and emerging technologies.
He previously worked as a global technology reporter at Quartz in New York and Digital Frontier in London, where he covered innovation, startups, and the global digital economy.
With years of experience reporting on cutting-edge technologies, Faustine focuses on AI developments, industry trends, and the impact of technology on society.
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