Banks Re-examine Algerian Funds Files And Activities
Banks and financial institutions in Algeria have begun requesting their customers to update their files and data as part of implementing “Know Your Customer” procedures, where providing documents proving identity, residence, activity, and sources of resources has become part of the banking information update process, the nature of the required documents varies according to the status of the customer, whether a natural or legal person, and according to the nature of the banking relationship.
The documents required for natural persons include a valid identity document, proof of residence, and documents proving activity and resources, while legal persons are required to provide company documents, from the articles of association and commercial registry to the identity documents of the legal representative and the beneficial owners, in addition to documents proving residence, activity, and turnover, as part of updating the information and data held by banks about their customers.
In this context, banks and financial institutions in Algeria have started updating their customers’ data, in implementation of the “Know Your Customer” procedures approved by the Bank of Algeria within the path of strengthening banking supervision and preventing money laundering and terrorist financing, pursuant to Instruction No. “04-2026” dated April 30, 2026.
This instruction defines the customer knowledge procedures applied to banks, financial institutions, and the financial services of Algerie Poste, it includes verifying the customer’s identity, the nature of their activity, and the sources of their funds and resources, in addition to identifying the beneficial owner for the accounts and transactions concerned, the Bank of Algeria dedicated May 18, 2026, as a study day to explain the content of the instruction and discuss how to implement it, in the presence of officials from banks, financial institutions, Algerie Poste, and representatives of several bodies, administrations, and experts.
In this framework, Credit Populaire d’Algerie, for example, sent a notice to its customers last Sunday inviting them to start updating their data, confirming that the process aims to ensure the reliability of information, secure transactions, and ensure the continuity of banking services.
For natural persons, the required documents include a valid identity document, a proof of residence document, and a document proving activity and resources, as for legal persons, the documents include a copy of the company’s articles of association, a copy of the commercial registry, and identity documents of the legal representative and beneficial owners or their agents where applicable, along with documents proving residence, activity, and turnover.
The customer knowledge procedures stipulate the necessity for the subject institutions to possess accurate and updated information about their customers, with the adoption of a level of care and follow-up according to the degree of risk associated with the banking relationship, these procedures fall within the regulatory framework related to the prevention and combating of money laundering, terrorist financing, and the financing of the proliferation of weapons of mass destruction.
This step comes in the context of Algeria strengthening its national system for combating financial crimes, especially after the evaluation of the system for combating money laundering and terrorist financing.
The Financial Action Task Force “FATF” had removed Algeria’s name in June 2026 from the list of countries subject to enhanced monitoring, known as the “Grey List”, following the addressing of strategic deficiencies that Algeria pledged to resolve within an agreed-upon action plan and succeeded in doing so.
The action plan required from Algeria included improving risk-based supervision, strengthening the framework for information related to beneficial owners, and increasing the effectiveness of reporting suspicious transactions, in addition to continuing to develop the legal and institutional framework for combating terrorist financing, which has been committed to as witnessed by the Financial Action Task Force.
Thus, the process of updating customer data in banks comes within the new regulatory measures aimed at enhancing the accuracy of banking information, verifying the identity of dealers, their activities, and the sources of their funds, and applying rules for the prevention of money laundering and terrorist financing at the financial sector level.
