Tax Directorate Tightens Controls on Precious Metals Trade

Algeria's Tax Directorate has approved stringent new control measures for traders of precious stones and metals. These initiatives are designed to enhance the national framework for preventing money laundering, combating terrorism financing, and thwarting the proliferation of weapons of mass destruction. The comprehensive guidelines, issued by the Directorate General of Taxes in October 2026, aim to safeguard the sector from being misused for illicit financial flows or suspicious transactions.

As part of these directives, the Tax Directorate, acting as the supervisory authority for this trade, has mandated specific obligations for compliance. These include rigorous customer identification processes and risk classification, particularly concerning politically exposed persons (PEPs). Traders must verify if a customer, beneficial owner, family member, or close associate falls under the PEP category, which encompasses heads of state, high-ranking politicians, senior government and judicial officials, managers of state-owned companies, and senior political party officials.

Furthermore, the guidelines require traders to establish effective risk management systems for early detection of PEPs and to implement clear policies for initiating and maintaining business relationships with them, with periodic reviews. Legal entities are obligated to obtain prior authorization from their decision-making bodies before engaging with PEPs, while individual traders must make and document such decisions themselves, adhering to enhanced and continuous due diligence. Businesses must also meticulously verify the source of funds and wealth for PEPs, subjecting their transactions to close and continuous monitoring, recording all observations.

To bolster anti-money laundering efforts, the Directorate General of Taxes has made it mandatory for precious stones and metals traders to report all suspicious transactions, including attempts or rejections due to customer behavior, to the Financial Intelligence Processing Unit without delay. These measures are grounded in national legislative and regulatory frameworks, notably Law No. 05-01 concerning the prevention and combat of money laundering and terrorism financing, alongside the Decision of July 3, 2025, and recommendations from the Financial Action Task Force. Non-compliance with these new guidelines will result in penalties under current legislation, reinforcing transparency and the integrity of the sector.