The decision to blacklist Algeria for money laundering, with significant consequences, comes at a time when Algiers’ diplomatic relations are already strained. Less than 24 hours earlier, Washington announced a 30% tariff on Algerian exports, citing an “unsustainable” trade deficit and practices deemed harmful to its economic security. Together, these actions reflect a growing loss of credibility for Algeria in the eyes of the two leading Western economic powers.
At the heart of the issue is Algeria’s persistent failure to modernize its financial system. The FATF highlights opaque banking practices, the lack of effective regulatory oversight, and weak international cooperation. Despite a few public statements, no serious structural reforms have been implemented.
Practically speaking, this blacklisting means European banks must apply stricter scrutiny to transactions involving Algerian entities. EU companies may also be compelled to reassess their commitments in a market now deemed high-risk.
In response to the blow, Algiers has issued only a formal protest. No concrete compliance plan has been announced, confirming an increasingly detached stance of economic sovereignty that clashes with the demands of global finance.
This setback also damages Algeria’s diplomatic image in Africa and within multilateral circles, undermining its aspirations for South-South leadership and balanced multilateralism.
Editorial team/le7tv