Algerian Radio
The Governor of the Bank of Algeria, Mr. Mohamed Lamine Lebbou, announced this Tuesday in Algiers the issuance of a new instruction to banks within a week regarding the implementation of “Know Your Customer” (KYC) standards. This measure is part of the ongoing efforts to adapt the national banking system to the transformations occurring in financial instruments.
During a panel discussion held at the second edition of the CEO Survey at the Abdelatif Rahal International Conference Center, attended by government members, business leaders, and economic experts, Mr. Lebbou explained that this instruction will be binding for all banks. He noted that the specific nature of economic operators' activities would be taken into account, allowing them, based on a simple declaration, to disclose their future income and its usage “without facing obstacles”.
In this context, the Governor emphasized the necessity of respecting regulations related to anti-money laundering and combating the financing of terrorism (AML/CFT), in addition to adhering to regulatory requirements. He also commended the efforts of Algérie Poste in updating its KYC records.
The KYC system serves as a mechanism implemented by banks and financial institutions to identify and verify the identities of clients and operators. This ensures transaction transparency, limits fraud and suspicious dealings, and ultimately bolsters the security of the banking system.
Regarding financial inclusion, the Governor affirmed that the success of this process depends on considering the nature of economic activities and their surrounding environment. He emphasized the importance of digitalization as a fundamental pillar for attracting the money supply circulating outside formal channels.
Mr. Taleb pointed out that the Monetary and Banking Law has paved the way for new players, including digital banks and payment service providers. He noted that several applications are currently under review by the Central Bank in preparation for their official entry into service.
Regarding monetary policy, the Governor explained that controlling inflation remains a top priority. He emphasized that the national economy has demonstrated resilience, recording lower inflation rates compared to some European countries, while maintaining financial stability, safeguarding purchasing power, and ensuring the continuity of social transfers.
He also noted the adoption of a cautious exchange rate policy focused on rationalizing resources and directing them toward strategic sectors. He highlighted that lowering the key interest rate aims to support commercial banks and enhance investment attractiveness, while ensuring refinancing operations to meet liquidity needs.
