Algeria's National Commercial Registry Center officially established a Beneficial Owner Register, a move intended to boost financial transparency and expedite the nation's removal from the Financial Action Task Force (FATF) grey list. Prime Minister Sifi Gherib signed a new executive decree enacting the register, which is designed to reveal the actual owners of companies and legal entities. The decree strengthens oversight mechanisms to combat money laundering and terrorism financing within the country. This significant measure is part of a broader executive decree that imposes mandatory declaration and data updates, aiming to enhance financial transparency across various sectors.
New Decree Details
The new executive decree establishes mandatory declaration and data updates for beneficial owners. It specifies the procedures for maintaining the public register of beneficial owners of legal persons and legal arrangements. The decree implements provisions outlined in Law No. 05-01 of February 6, 2005. It designates "competent authorities" as administrative, law enforcement, and regulatory bodies responsible for combating financial crimes. The decree further defines "legal arrangements" to encompass trusts, and also includes entities such as non-profit associations and endowments within its scope, ensuring full coverage of various organizational structures.
Mandatory declarations for legal persons must include their name, legal form, address, and registration numbers, such as commercial, tax, accreditation, association, or endowment numbers. These declarations also require the identity of board members, managers, shareholders, and partners. Additionally, the basic law or founding contracts must be submitted, along with the identity of the founder and any individual exercising effective control over the entity. A submission of the shareholder register, detailing share percentages and voting rights, is also mandatory. For legal arrangements, declarations must provide the name, address, and founding elements, as well as the identities of founders, trustees, and beneficiaries. The decree also mandates disclosure of management structures, objectives, decision-making methods, and details concerning intermediaries, advisors, accountants, and financial or tax service providers, providing a thorough understanding of their operations.
Declaration and Update Requirements
Each legal person operating in Algeria must submit a mandatory declaration of their beneficial owner to the commercial registry services located in the wilaya of the company's headquarters. This declaration requires full information about the entity and its founding elements. Crucially, it mandates precise data on the beneficial owner, including their full name, date and place of birth, nationality, address, and national identification number. For foreign beneficial owners, details from their identification card or passport are required. The declaration must also specify the date on which the individual acquired beneficial owner status, the criteria used to establish control, and the identities of any authorized persons responsible for appointments, dismissals, or decision-making within the entity.
Beneficial owners of legal arrangements are subject to similar rigorous declaration requirements. These declarations must identify founders, trustees, beneficiaries, and any individual who exercises effective control over the arrangement. Declarations for legal arrangements must detail the assets under management, outline professional relationships maintained with financial institutions, and include supporting documents that demonstrate ownership and control chains. Trustees and agents involved in trusts must also inform financial institutions and regulatory bodies of their legal status when establishing business relationships or conducting financial transactions, ensuring transparency in financial dealings.
The new regulations stipulate a strict timeline for these declarations. Submissions must be made within 30 days of the entity's establishment, the commencement of its activity, or the registration of the legal arrangement. Any subsequent changes to the declared data must also be updated within 30 days of their occurrence. Beyond initial and updated declarations, an annual confirmation of data accuracy is mandatory, which must be completed before December 31st of each year. All declarations are to be submitted electronically using specific forms provided by the authorities, streamlining the process and ensuring consistency.
Oversight and Verification Powers
Commercial company data is deposited with Algeria's National Commercial Registry Center. Data for non-profit organizations is submitted to the Ministry of Interior, while endowment data is deposited with the ministry responsible for religious affairs. Files concerning civil companies and legal arrangements are processed by the Directorate General of Taxes. Commercial registry officials, in coordination with competent authorities, possess broad powers to verify the accuracy of submitted information.
Verification processes may involve reviewing internal registers and utilizing additional information sources, including tax data and input from regulatory bodies. Officials can request corrections or the completion of declarations, allowing a maximum of 15 days for compliance. Institutions holding beneficial owner information are mandated to provide it to the commercial registry upon request. The data provided must be accurate, secure, and traceable, enabling the tracking of all access or modification operations. This ensures the integrity and reliability of the information within the register, bolstering Algeria's efforts to combat financial crimes.