Algeria — Country Risk Report

Algeria (Africa • North Africa). Risk report as of the 19 Jun 2026 FATF plenary.

High country risk, with elevated corruption risk. Algeria's country risk score is 5.0/10, placing it in the high-risk band. The principal driver is weak corruption, alongside voice and accountability risk. Algeria is not currently FATF grey- or black-listed. Algeria is not subject to comprehensive country-wide sanctions. Firms should apply additional scrutiny where exposure involves state-linked entities, restricted sectors, sensitive technology, dual-use goods or politically exposed counterparties.

Recommended treatment

Enhanced due diligence for defined risk triggers.

At a glance

  • FATF status: Not currently listed (one indicator only; it does not set the overall country risk rating by itself)
  • Comprehensive country sanctions: none identified. Targeted sanctions exposure: possible, screen applicable persons, entities and sectors
  • Government effectiveness and rule of law: 5.6/10
  • Corruption (CPI 2025): 34/100, rank #109 of 182
  • Enforcement data: not yet assessed (no RegActions coverage)

Country Risk Score: 5.0/10 (High)

Higher score means higher country risk (global average 4.6). Full information available. Strong data coverage. Enforcement activity and CPI are shown for context but do not change the score.

All three parts of the score are available.

How this score was calculated

  • Financial crime controls: 6.6/10 — 50% of this score
  • Government effectiveness and rule of law: 5.6/10 — 30% of this score
  • International sanctions: 0.0/10 — 20% of this score

International sanctions contributes 0.0 because the complete UN, UK, EU and US review found no direct country-level sanctions programme. People or organisations connected to the country may still appear on sanctions lists.

Show the exact calculation

aml 6.6 × 50% + governance 5.6 × 30% + sanctions 0 × 20% = 5; final 5

Principal risk drivers

  • Corruption (WGI) — 6.4/10
  • Voice & accountability — 6.2/10
  • Rule of law & institutions — 5.5/10

Mitigating factors

  • Not currently on the FATF grey or black list.
  • No comprehensive country-wide sanctions programme.
  • Comparatively stronger political stability (4.6/10).
  • Risk is concentrated in specific counterparties, sectors and transactions rather than applying uniformly.

Business impact

  • Customer onboarding (High): Additional ownership and control verification may be required.
  • Payments and transactions (High): Review transaction purpose, counterparties and geographic routing.
  • Trade and export activity (High): Screen goods, end users and potential dual-use exposure.
  • Corporate clients (High): Assess state ownership, government links and political exposure.
  • Ongoing monitoring (High): Apply alerts for ownership changes, sanctions and geopolitical developments.

Recommended controls

  • Verify ultimate beneficial ownership using more than one reliable source.
  • Identify state ownership, government influence and politically exposed persons.
  • Screen entities, directors and beneficial owners against applicable sanctions lists.
  • Apply enhanced review to technology, defence, telecommunications, financial services and dual-use activity.
  • Document transaction purpose and source of funds where cross-border structures are complex.
  • Escalate unresolved ownership opacity or adverse information to Compliance.

Enhanced due diligence triggers

  • State ownership / control
  • PEP involvement
  • Sensitive / restricted sectors
  • Opaque ownership
  • Adverse media
  • Dual-use goods & technology
  • High-risk intermediary routing

FATF status: Not currently listed

Algeria is not on the FATF grey or black list as of the 19 Jun 2026 plenary.

Source details

International sanctions by issuing body

  • UN: No
  • EU: No
  • UK: No
  • US: No

No means the complete UN, UK, EU and US review found no direct country-level programme. People or organisations may still appear on sanctions lists.

Government effectiveness and rule of law (World Bank 2024, percentile)

  • Government Effectiveness: 46/100
  • Regulatory Quality: 43/100
  • Rule of Law: 45/100

FATF status history

  • 19 Jun 2026: Removed from the FATF grey list

Regulators and legal framework

FATF network

FATF network via MENAFATF.

Last mutual evaluation: 2023 · report

National regulators

Regulator profiles not yet available on RegActions.

FIU: Egmont Group member (CTRF)

Framework signals

  • FATF listing: Not currently listed
  • International sanctions: no listed programme identified
  • BO register: Public (live since 2023)
  • Corruption (CPI 2025): 34/100, rank #109 of 182
  • Rule of law (WGI): 5.5/10 risk

Sector exposure

  • Banking & payments (Low): No FATF listing, rule-of-law governance within normal range
  • Trade & export controls (Low): No sanctions programme or FATF black-list constraint identified
  • Crypto & virtual assets (Elevated): Weak accountability governance (WGI 6.2/10 risk)
  • Real estate & luxury assets (Elevated): Elevated corruption exposure (CPI 34/100)
  • State-linked & procurement (Elevated): State-capture exposure (corruption WGI 6.4/10)

Derived from sanctions tier, FATF listing, World Bank WGI governance and CPI; no per-sector dataset is asserted.

Algeria: analysis

Algeria's profile is governed entirely by its governance indicators; no FATF listing or sanctions apply following its removal from the FATF grey list in June 2026. The weakest domain is corruption at an elevated level (35% weight), closely followed by voice and accountability. Rule of law and institutions is elevated (40% weight), which is the principal drag on the overall picture. Political stability is the relative strength. The CPI reading corroborates the governance picture and places Algeria in the lower half of the global transparency ranking.

Outlook

Algeria's grey list removal in June 2026 signals a meaningful improvement in its AML/CFT framework and, if reform momentum is maintained ahead of the next FATF plenary in October 2026, the overall risk trajectory is cautiously positive. Sustained progress will depend on translating institutional reform into measurable reductions in corruption and improved rule-of-law metrics over the medium term.

Key watchpoints

  • Monitor FATF plenary outcomes (next: October 2026) for any reassessment of Algeria's status following its recent grey list removal.
  • Track CPI trajectory as a leading indicator of corruption-control progress.
  • Assess whether rule-of-law improvements accompany structural AML/CFT reforms.
  • Watch for any changes to political stability indicators given its moderate risk rating, which remains an area of moderate concern.

Assessment currency

  • FATF status: Not listed (as of 19 Jun 2026)
  • Sanctions exposure: None identified (as of Jul 2026)
  • Governance (WGI): Latest dataset incorporated (as of 2024)
  • Corruption (CPI): 34/100 (as of 2025)
  • RegActions assessment: Reviewed (as of 19 Jun 2026)

Public evidence layer

FATF action: none. No FATF call-for-action or increased-monitoring status was identified at the latest plenary. This does not establish low risk.

Contextual signals (not scored)

  • FATF network membership: FATF regional network: MENAFATF (present, as of 2026-07)
  • EU non-cooperative tax jurisdictions: Not listed in Annex I (absent, as of 2026-02-17)
  • Egmont Group FIU: CTRF (present, as of 2026-07-17)
  • Beneficial-ownership register: Public (live since 2023) (present, as of 2026-07-17)
  • Transparency International CPI: 34/100, rank 109 (present, as of 2025)

Evidence freshness

  • FATF monitored-jurisdiction status: current; data 2026-06-19
  • FATF mutual evaluation and follow-up ratings: current; data 2026-07-31; follow-up 2026-05; base assessment 2023-07
  • World Bank governance indicators: current; data 2024
  • UN, UK, EU and US sanctions regimes: current; data 2026-08-16

Contextual signals are public evidence only and do not change the immutable v2 score.

Download evidence PDF · CSV · JSON

Regional peer scores

FAQ

Is Algeria on the FATF grey list?

No. Algeria is not on the FATF grey or black list as of the 19 Jun 2026 plenary. FATF listing is one AML indicator; absence from the list does not by itself make Algeria low risk. The next FATF plenary review is scheduled for Oct 2026.

Is Algeria subject to sanctions?

No country-level programme was identified. In the approved RegActions snapshot, no comprehensive or targeted country-wide sanctions programme was found for Algeria, but individual listed persons may still exist, so firms should continue to screen counterparties against the applicable lists.

What is Algeria's country risk rating?

RegActions rates Algeria at 5.0/10 (High risk), where a higher score means higher country risk. The score combines financial crime controls, government effectiveness and rule of law, and international sanctions. Transparency International's 2025 Corruption Perceptions Index scores Algeria 34/100 (rank #109 of 182).

What due diligence applies to Algeria?

Enhanced due diligence for defined risk triggers. This is decision-support based on Algeria's FATF status, governance and sanctions signals, and is not a substitute for a firm's own risk assessment.

Source: FATF black & grey lists · World Bank WGI (CC BY 4.0 — World Bank WGI) · TI CPI (CC BY-ND 4.0 — Transparency International, display only)