Algerian Radio
The Bank of Algeria has issued a new directive defining the Know Your Customer (KYC) procedures applicable to banks, financial institutions, as well as the financial services of Algérie Poste.
Directive No. 04-2026, dated April 30, 2026, and signed by the Governor of the Bank of Algeria, Salah Eddine Taleb, is issued in application of the provisions of Regulation No. 24-03, dated July 24, 2024. This regulation pertains to the prevention and combating of money laundering, terrorist financing, and the financing of the proliferation of weapons of mass destruction, as amended and supplemented.
Pursuant to Article 2 of the text, the identification and verification obligations set forth in the provisions of this directive apply to habitual customers and occasional customers alike, as well as to proxies, legal representatives, any person claiming to act on behalf of a customer, and beneficial owners.
According to the text of the directive, banks, financial institutions, and the financial services of Algérie Poste (subject to this text) may, within the limits of the applicable legal and regulatory provisions, apply more stringent identification and verification procedures that are proportionate to their specificities, the nature of their activities, and their size.
In this regard, the text mandates the subject entities, prior to establishing any business relationship, throughout its duration, and upon conducting any occasional transaction, to identify and verify the customer's identity.
The identification and verification process must essentially enable the authentication of the identity and address of the customer, their legal representative, and where applicable, the beneficial owner(s). It must also establish the customer profile, as well as the purpose and nature of the business relationship or the occasional transaction, in order to determine the risk profile.
In implementation of customer identification and verification procedures within a risk-based approach, consideration must be given to customer profiles, products, services, distribution channels, and geographical areas. According to the text, subject entities are required to identify, assess, understand, and mitigate the risks of money laundering, terrorist financing, and the financing of the proliferation of weapons of mass destruction.
