Algeria’s Central Bank has approved non-binding guiding principles this week to prevent terrorist misuse of new financial technologies, a move that will tighten compliance for small and medium-sized enterprises (SMEs) seeking digital financing.
The document, published by the United Nations on 21 January 2025, urges member states to scrutinize fintech channels such as peer-to-peer lending platforms, digital wallets and crowdfunding portals that serve Algerian entrepreneurs. It does not create new laws, but banks and microfinance institutions (MFIs) are expected to apply the principles within six months to maintain access to foreign currency lines used by SMEs.
According to a circular circulated to all commercial banks on 12 January 2025, the principles require enhanced customer due diligence for any fintech transaction exceeding 500 000 Algerian dinars (approximately 3 500 euros). MFIs serving traders in Algiers, Oran and Constantine must verify the ultimate beneficial owners of fund flows, document the economic rationale behind each loan, and report suspicious activity within 24 hours to the Financial Intelligence Unit (CENTIF).
Bankers and fintech founders in Algiers say the tighter checks will slow approvals for digital loans, which have grown by 22 % in 2024 to 14 billion dinars, according to the Algerian Banking Association. “A startup that used to receive micro-loans in 48 hours now waits up to ten days,” said Yacine Touati, founder of DinarPay, a mobile lending app with 120 000 active SME customers. Touati added that DinarPay’s onboarding cost has risen 15 % because additional compliance staff must review every transaction above the threshold.
The Central Bank’s governor, Salah Eddine Taleb, said the guidelines aim to protect Algeria’s international reputation and keep correspondent banking relationships open. “If we do not align our controls with FATF standards, European banks may cut ties with Algerian lenders,” Taleb told local media on 15 January 2025.
For the Algerian diaspora, the stricter regime complicates cross-border transfers. Remittances from France, Canada and Spain—estimated at 2.1 billion euros in 2024 by the World Bank—often pass through digital wallets before reaching SMEs in Annaba, Tlemcen or Béjaïa. Mourad Aït Kaci, an entrepreneur in Montreal who channels funds to an import-export firm in Blida, noted that digital wallets now ask for notarized proof of the recipient’s tax ID and a detailed invoice before releasing funds.
“Before, I could send 3 000 euros in two clicks,” Aït Kaci said. “Now it takes five days and costs an extra 40 euros in notary fees.”
The Central Bank has not published an official impact assessment, but bankers in Algiers estimate that 15 % of active fintech wallets may be forced to close if compliance costs exceed revenues. The Microfinance Association (AMF) has asked the government to subsidize compliance software for MFIs serving rural areas.
Entrepreneurs in sectors such as e-commerce, agri-processing and renewable energy say the timing is poor. “We need faster loans to buy solar panels before the next winter,” said Leïla Hamoudi, who runs a 35-employee solar kit assembly plant in Ghardaïa. Her last loan approval from an MFI took 18 days, twice as long as in mid-2024.
Key takeaway for entrepreneurs
Fintech lenders and digital wallets must now verify all transactions above 500 000 dinars within 24 hours or risk penalties. Approval times for micro-loans are rising, and diaspora remittances routed through digital channels face extra documentation. SMEs in sectors with long payback cycles—such as renewable energy—should budget for longer financing cycles.
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