Strengthening the Framework for Beneficial Owners

Algeria has adopted Executive Decree No. 26-163 of April 20, 2026, regarding the public registry of beneficial owners of legal entities and legal arrangements (the “Decree 26-123”), which repeals and replaces Executive Decree No. 23-429 of November 29, 2023.

This new text is part of efforts to strengthen the framework for combating money laundering and terrorist financing by expanding and clarifying the applicable framework.

Key changes:

• Expansion of the scope of application: the framework no longer applies solely to legal entities under Algerian law, but is extended to associations, non-profit organizations, wakfs, civil companies, and legal arrangements (including trusts).
• Recognition of legal structures and foreign trusts: Decree 26-123 introduces a definition and a legal framework for these structures, including those established abroad.
• Maintenance of the ownership threshold: the 20% threshold of capital or voting rights for identifying the beneficial owner is confirmed by Article 15 of Decree 26-123.
• Maintenance of the obligation to maintain an internal register of beneficial owners initially provided for in Article 9 of Decree 23-429: every entity must maintain a register of beneficial owners, regularly updated in accordance with Article 17 of Decree 26-123.
• Annual confirmation of beneficial owners: in addition to reporting obligations (notably upon incorporation, in the event of a change, or within 30 days following certain transactions), entities are now subject to a continuous obligation to update their records, requiring them to confirm annually, by December 31, the accuracy of the information reported regarding their beneficial owners to the National Center for the Commercial Register (CNRC) (Art. 12 of Decree No. 26-163).

Failure to comply with these provisions constitutes an offense punishable by imprisonment for 6 months to 2 years and a fine of 1,000,000 to 2,000,000 Algerian dinars, or by one of these two penalties (Art. 32 bis of Law No. 05-01 of February 6, 2005, on the prevention and combating of money laundering and the financing of terrorism, as amended in particular by Law No. 25-10 of July 24, 2025).

This new decree strengthens transparency and beneficial ownership monitoring requirements, while significantly expanding the scope of entities covered. In particular, it mandates a continuous process of updating and verifying information, going beyond the initial reporting requirement.

External Financing of Projects of National Interest: Framework for the Use of External Funding

An order dated February 17, 2026, published in the Official Gazette, clarifies the procedures for accessing external financing for the implementation of projects of national interest.

Pursuant to Article 108 of the 2020 Finance Act, as amended by Article 201 of the 2025 Finance Act, this text entrusts the Ministry of Finance with the preparation, coordination, and monitoring of external financing operations, including the identification of financial partners and the conduct of negotiations.

This new text also imposes greater responsibility on the relevant ministries and public institutions regarding the maturity of projects, the quality of preliminary studies, and adherence to costs, deadlines, and objectives.

Finally, the use of this type of financing remains strictly regulated, being subject to prior authorization by the Council of Ministers, which is sought after the project has been approved by the lender.

New Requirements for Updating the Commercial Register

Law No. 26-12 of June 8, 2026 which amends and supplements Law No. 04-08 on the conditions for conducting commercial activities, is part of ongoing reforms aimed at enhancing the reliability of commercial information, further regulating access to commercial activities, and streamlining certain administrative procedures related to investment.

Key changes:

• Mandatory updating of the commercial register: Any business operator, whether an individual or a legal entity, is now required to initiate procedures to amend their commercial register extract within a maximum period of one (1) month following any change affecting the information contained in the commercial register extract or the legal status of the entity (Art. 2 of Law 26-12).

Failure to update the commercial register within the prescribed time limit is punishable by a fine ranging from 10,000 DZD to 500,000 DZD for individual business owners and from 300,000 DZD to 700,000 DZD for legal entities. The offender is given formal notice to rectify the situation within three (3) months of receiving the notification. If the situation is not rectified, the wali may order the administrative closure of the premises until compliance is achieved. If the situation is not regularized within three (3) months following this administrative closure, the competent court may order the business’s removal from the commercial register (Art. 6 of Law 26-12).

• Streamlining of investment formalities: CNRC representatives stationed at the one-stop investment shops are now authorized to prepare, sign, and issue all deeds, records, and documents falling within the purview of the commercial registry officer (Art. 4 of Law 26-12).
• Exemption from legal publication requirements for certain entities in the defense sector: public industrial and commercial enterprises under the economic sector of the People’s National Army, as well as companies in which these enterprises hold shares, are now exempt from legal publication requirements (Art. 5 of Law 26-12).