Algerian Radio
The Minister of Internal Trade and National Market Regulation, Mrs. Amel Abdellatif, presented this Monday an expose before the members of the People's National Assembly regarding the draft law on the conditions for exercising commercial activities, which aims to establish transparency in commercial activity and protect the national economy.
In a plenary session chaired by the Speaker of the Assembly, Mr. Brahim Boughali, and attended by the Minister of Relations with Parliament, Mrs. Nadjiba Djilali, Mrs. Abdellatif explained that the draft law is “an embodiment of an integrated reform vision pursued by the State under the directives of the President of the Republic of Algeria, Mr. Abdelmadjid Tebboune. These directives aim to establish the foundations of a modern, diverse national economy capable of keeping pace with rapid transformations and responding to the citizen's aspirations within a framework of transparency, efficiency, and competitiveness.”
The review of this law, the Minister added, falls within “a comprehensive national process embodying a firm will to enshrine the principles of transparency and efficiency, and to enhance the national economy's capacity for smooth and effective integration into its international economic and financial environment, as the project includes measures enabling the transition from traditional oversight to risk-based oversight.”
She indicated that the draft law seeks to “strengthen alignment with international standards related to combating money laundering and the financing of terrorism, consolidate the trust of partners and financial institutions, and enhance the attractiveness of the investment climate, as well as protect the national economy from systemic risks associated with financial crimes.”
This text also establishes “a clear and integrated legal framework that ensures the provision of accurate information regarding legal entities, including incorporation data, management, and ownership structure, while respecting specific legal deadlines for updating this information. Furthermore, it strengthens the powers of the National Center of the Commercial Register (CNRC) in collecting, analyzing, and exchanging data, as well as assessing associated risks, while establishing an effective and balanced deterrent system in case of failure to declare or update data, thereby promoting a culture of compliance and consolidating respect for the law,” Mrs. Abdellatif stated.
The amendments included in the draft law center around “obligating the trader to amend their commercial register extract within a maximum period of one month following any change in their status or in the articles of association for legal entities.”
To ensure effective compliance, Article 6 establishes financial fines ranging from 10,000 to 500,000 DZD for natural persons, and from 300,000 to 700,000 DZD for legal entities, in the event of failure to fulfill the obligation to update basic information.
The offender shall be notified to regularize their status within a three-month period from the date of formal notice. Upon the expiration of this period, the Wali shall issue a decision for the administrative closure of the premises until the status is regularized. If regularization is not achieved within the three months following the administrative closure, the judicial authority may order the cancellation of the commercial register, according to the draft text document.
In its preliminary report, the Committee on Economic Affairs, Industry, Trade, Energy, and Mining praised the draft law for its measures aimed at enhancing transparency and tightening oversight on major financial operations. It also lauded the simplification of investment procedures through the Single Windows, as well as the law's alignment with Financial Action Task Force (FATF) standards in combating economic crimes.
For their part, the deputies praised the content of the draft law during the debate, noting that it falls within the right path aimed at promoting a transparent economy and protecting the market from various manifestations of financial imbalances. This ensures the enshrinement of the principles of justice and fair competition, particularly in the fight against the informal market.
They also called for exploring ways to integrate informal commercial activities into the organized economy without excluding the citizen, by simplifying procedures and adopting an incentive-based approach, along with organizing consultative workshops involving various stakeholders.
The deputies also emphasized the necessity of providing comprehensive and updated national information for all sectors, allowing for market regulation, especially since the trade sector is closely linked to other sectors. They stressed the importance of comprehensive digitalization through a unified and integrated window to ensure simplified procedures and enhanced transparency in economic transactions.
