Banque d'Algérie (BoA)

Overview

The Banque d'Algérie (BoA) is the central bank and primary monetary authority of Algeria. Content for this section is being enriched from official sources. The Banque d'Algérie (BoA) in Algeria has regulatory functions documented in adjacent sections of this profile.

Basic Identity

Classification

Inclusion Justification

What This Entity Oversees

البنك المركزي الجزائري — Bank of Algeria

OVERVIEW

The Banque d'Algérie (BoA) is Algeria's central bank and the primary financial regulator, responsible for monetary policy, banking supervision, payment systems management, foreign exchange control, and AML/CFT enforcement. The BoA operates under strict state oversight and plays a central role in managing Algeria's macroeconomic stability.

Current Leadership:

• Governor: Mohamed Lamine Lebbou (appointed February 25, 2026)
• Age 48, economist with French education
• Master's degree in Industrial Economics
• Postgraduate studies in Economic Analysis (Université Lumière Lyon 2, France)
• Former head of National Bank of Algeria (BNA), 2021-2024
• Previous interim Governor: Mouatassem Boudiaf (January-February 2026)

Establishment Date: 1962 (post-independence reorganization)

Headquarters: Algiers, Algeria

Regulatory Focus: Monetary policy, banking stability, strict foreign exchange controls, AML/CFT enforcement.

LEGAL BASIS

Primary Legislation:

• Organic Law of the Bank of Algeria — Establishes BoA independence, mandate, and organizational governance
• Money and Credit Ordinance — Core regulation defining monetary policy framework, banking oversight, and credit controls
• Banking Regulation Law — Governs licensing, operation, and supervision of commercial and Islamic banks
• Law on Foreign Exchange Control — Establishes strict currency transaction requirements and restrictions
• Regulation No. 24-03 (August 2024) — AML/CFT framework; designates Bank of Algeria, Algeria Post, and virtual asset providers under AML/CFT supervision

Regulatory Authority:

• Issuance and revocation of banking licenses
• Monetary policy control and implementation
• Prudential regulation and capital standards
• Foreign exchange administration and control
• Payment systems oversight
• AML/CFT compliance and enforcement

MONETARY POLICY

Policy Instruments:

• Central bank policy rate (base rate for monetary transmission)
• Required reserve ratios for commercial banks
• Open market operations
• Liquidity facility management
• Direct credit controls and limits

Framework:

• Inflation targeting with government coordination
• Money supply management through dinar controls
• Credit allocation directives (sometimes directed toward priority sectors)
• Exchange rate stabilization interventions

Challenges:

Algeria's monetary policy operates within constraints of limited foreign currency reserves and dependence on hydrocarbon export revenues, requiring active management of money supply and inflation pressures.

BANKING SUPERVISION

Supervisory Scope:

The Bank of Algeria supervises all commercial banks, Islamic (Sharia-compliant) banks, development banks, and other credit institutions operating in Algeria.

Prudential Standards:

• Minimum capital adequacy ratios exceeding Basel III requirements
• Loan classification system with specific provisioning rules
• Large exposure limits
• Single borrower concentration limits
• Related-party transaction restrictions
• Liquidity coverage ratios

Examination Process:

• On-site inspections at licensed institutions
• Off-site monitoring through regulatory reports
• Stress testing and capital adequacy reviews
• Risk assessment ratings (CAMELS or equivalent)
• Compliance verification for regulatory violations

Enforcement Mechanisms:

• Administrative fines and penalties
• Forced capital increases or capital injections
• License suspension or revocation
• Appointment of conservators or administrators
• Restitution orders for misconduct
• Criminal prosecution for serious violations

PAYMENT SYSTEMS

Infrastructure:

Algeria's payment system includes:

• Real-time gross settlement (RTGS) for large-value interbank transfers
• Automated clearing houses (ACHs) for retail payments
• Check clearing and settlement systems
• Card networks and payment processors
• Correspondent banking arrangements

Regulation & Oversight:

• Participant requirements and capital standards
• Operational resilience and business continuity standards
• Cybersecurity and information security requirements
• Settlement finality rules
• Netting and collateral arrangements
• Risk management oversight

Digital Payments Development:

Growing emphasis on electronic payment infrastructure development, with increasing mobile money and online banking regulation.

FOREIGN EXCHANGE CONTROLS

Strict Control Framework:

Algeria maintains one of the world's most restrictive foreign exchange regimes:

Export Earnings Repatriation:

• Non-hydrocarbon companies required to repatriate export earnings
• Maximum 50% of earnings may be retained in foreign currency
• Hydrocarbon sector has more favorable arrangements
• Exceptions available for strategic sectors (rare)

Domestic Holdings:

• Algerian residents generally prohibited from holding foreign financial assets
• Exceptions for business purposes with central bank authorization
• Restrictions on cross-border fund transfers by individuals
• Limited currency conversion allowances for travel

Transaction Requirements:

• Foreign exchange permits required for most international transactions
• Documentation requirements (invoices, contracts, shipping documents)
• Banking channel restrictions (transactions through authorized dealers only)
• Reporting and verification procedures

Currency Management:

• Official exchange rate determination by Bank of Algeria
• Intervention authority to stabilize the dinar
• Foreign currency reserve management
• Control of gold and precious metal movements

Implementation Issues:

Central bank regulations instruct banks to accept unlimited foreign currency deposits from individuals meeting basic identification requirements only, creating potential AML/CFT compliance gaps.

AML/CFT REGULATION

Legal Framework:

• Regulation No. 24-03 (August 2024) — Updated AML/CFT regime; covers banks, Algeria Post, and virtual asset service providers
• FATF Recommendations — Alignment with international standards
• MENAFATF Participation — Member of Middle East & North Africa Financial Action Task Force

Supervisory Authority:

• Bank of Algeria: Supervises AML/CFT compliance for financial institutions
• Financial Intelligence Processing Unit (CTRF): Investigates suspicious activities under Ministry of Finance coordination

Key Obligations:

• Customer due diligence (CDD) and beneficial ownership identification
• Know-your-customer (KYC) procedures
• Ongoing transaction monitoring and suspicious activity reporting
• Record retention (5+ years minimum)
• Compliance officer appointment and training
• Internal audit and compliance controls

Suspicious Transaction Reporting:

• Banks must report suspected money laundering or terrorist financing
• CTRF coordinates investigations and intelligence sharing
• International cooperation with foreign FIUs
• Law enforcement coordination

Virtual Asset Provider Regulation:

• Regulation No. 24-03 extends AML/CFT oversight to cryptocurrency and virtual asset providers
• License requirements for virtual asset service providers
• Customer identification and verification
• Transaction monitoring
• Sanctions screening

Enhanced Due Diligence:

• Heightened scrutiny for politically exposed persons (PEPs)
• High-risk jurisdiction monitoring
• Non-resident account restrictions
• Correspondent banking relationship verification
• Shell company and nominee account prohibitions

International Monitoring Status:

Algeria was added to FATF gray list (increased monitoring jurisdiction) in October 2024, reflecting AML/CFT compliance concerns.

ENFORCEMENT

Powers & Sanctions:

• Administrative fines up to specified caps
• License suspension and revocation
• Corrective action orders
• Asset seizure and confiscation (linked to crime proceeds)
• Criminal prosecution
• Deferred prosecution agreements

Violation Categories:

• AML/CFT non-compliance
• False or incomplete reporting
• Inadequate customer due diligence
• Failure to report suspicious activities
• Unauthorized financial activities
• Money laundering facilitation

Coordination:

• Information sharing with law enforcement agencies
• International law enforcement cooperation
• FATF mutual evaluation processes
• Regional regulatory coordination

INTERNATIONAL ENGAGEMENT

International Cooperation:

• FATF Mutual Evaluation reviews and action plans
• MENAFATF membership and participation
• IMF Article IV consultations
• World Bank technical assistance
• OPEC and regional economic forums

FATF Gray List Status:

As of October 2024, Algeria is subject to FATF increased monitoring, reflecting identified AML/CFT deficiencies. The jurisdiction must implement action plans to improve compliance with FATF Recommendations.

Standards & Harmonization:

• Basel III banking standards adoption
• IFRS convergence for financial reporting
• FATF AML/CFT standards alignment
• Regional payment system integration initiatives

CONTACTS & INFORMATION

Main Office:

Banque d'Algérie

Algiers

Algeria

Website: https://www.bank-of-algeria.dz/

Key Divisions:

• Monetary Policy & Macroeconomic Research
• Banking Supervision & Prudential Regulation
• Foreign Exchange Administration & Control
• Payment Systems & Settlement
• AML/CFT Compliance (CTRF coordination)
• Legal & Regulatory Affairs
• International Relations

Regulatory Departments:

• License and Authorization Division
• Compliance and Examination Division
• Enforcement and Sanctions Division
• Financial Intelligence Unit Coordination

SOURCES & REFERENCES

1. Algerian President Replaces Central Bank Governor | Central Banking
2. Le Président Tebboune Nomme un Nouveau Gouverneur de la Banque d'Algérie | Algerie Eco
3. Banque d'Algérie - Official Website
4. AML Compliance in Algeria: A 2025 Guide for Fintechs and Regulated Businesses | Vove ID
5. Algeria - FATF Jurisdictions
6. Algeria AML/CFT Activities - EU AML/CFT Global Facility

Document Classification: Public Regulatory Reference

Region: North Africa / MENA

Last Verified: April 2026

Regulatory Powers

This entity exercises the following regulatory powers as the central monetary authority:

Regulatory Role and Function

Legal Foundation

Established by primary legislation (Central Bank Act or equivalent enabling statute) enacted by the national legislature. Operates under a statutory mandate that defines its objectives, powers, governance structure, and relationship with government. The legal framework typically provides for operational independence in monetary policy while maintaining accountability to the legislature.

Licensing and Authorization Relevance

The Banque d'Algérie (BoA) is a key licensing authority in Algeria's financial system:

The licensing process typically involves assessment of capital adequacy, fitness and propriety of management, business plan viability, AML/CFT compliance frameworks, and IT systems readiness.

Payments and Money Movement Relevance

The Banque d'Algérie (BoA) plays a central role in Algeria's payment ecosystem:

Payment Systems Governed or Overseen

The Banque d'Algérie (BoA) operates and/or oversees the national payment and settlement infrastructure of Algeria. Specific systems include:

[Further detail on specific system names requires verification from official sources]

Relationship to Other Regulators

The Banque d'Algérie (BoA) operates within Algeria's broader financial regulatory architecture and maintains relationships with:

Geography and Jurisdiction Notes

Important Departments and Divisions

Key Public Resources

Notes on Naming and Language