Key points
- Notaries are among the designated non-financial businesses and professions required to apply preventive measures, including suspicious transaction reporting to the CTRF (Law No. 05-01 as amended by Law No. 23-01 of 7 February 2023).
- The National Chamber of Notaries is the AML/CFT supervisory authority for notaries (Art. 10 bis 3 of Law No. 05-01 as amended by Law No. 23-01 of 7 February 2023).
- Since 1 January 2025, real estate transactions involving built or undeveloped property must be paid by non-cash means (Article 207 of the 2025 Finance Law).
- Supervisory authorities perform their duties using a risk-based approach, through off-site and on-site inspections (Executive Decree No. 23-430 of 29 November 2023, Official Journal No. 76 of 30 November 2023).
- A public register of beneficial owners of legal persons incorporated under Algerian law is kept by the CNRC (Art. 8 of Law No. 05-01 as amended by Law No. 23-01 of 7 February 2023).
Updated October 26, 2026
In this article
An apartment sale paid by a third party who appears nowhere in the file, a company set up with front shareholders, a gift followed by a quick resale: notaries see a considerable share of the country's property and wealth flows. That is precisely what makes them a key link in prevention. The AML/CFT obligations for notaries are no longer theoretical: they affect every sale deed, every company formation and every share transfer you handle.
Algeria's removal from the FATF grey list on 19 June 2026 is not an end point but a change of focus. Assessors will no longer simply check that laws exist: they will look at whether exposed professions, with notaries at the forefront, actually apply due diligence and report suspicious transactions. This guide explains what is expected of your office and how to prepare.
1. Applicable laws and supervisory authority
The foundation is Law No. 05-01 of 6 February 2005 on the prevention of and fight against money laundering and terrorist financing, substantially amended by Law No. 23-01 of 7 February 2023 and then by Law No. 25-10 of 24 July 2025. Its Article 4 distinguishes financial institutions from designated non-financial businesses and professions (DNFBPs). Notaries are expressly listed in the second category, alongside lawyers, bailiffs, auctioneers and real estate agents.
Article 10 bis 3 of the law designates the National Chamber of Notaries (Chambre nationale des notaires) as the authority responsible for AML/CFT supervision, monitoring and regulation of notaries. Executive Decree No. 23-430 of 29 November 2023 (Official Journal No. 76 of 30 November 2023) specifies how these authorities carry out their mission: regulations for the professions they supervise, a risk-based approach, off-site and on-site inspections, corrective measures and disciplinary sanctions for breaches, and coordination with the CTRF.
Two further elements complete the picture. Article 8 of amended Law No. 05-01 provides for a public register of beneficial owners of legal persons incorporated under Algerian law, kept by the National Trade Register Centre (CNRC). Law No. 25-10 requires a national and sectoral risk assessment, regularly updated and shared with obliged entities: your own risk analysis should build on it. For an overview of the framework, see our guide to AML/CFT compliance in Algeria and our analysis of Law 23-01 and Law 25-10.
2. Key obligations
Risk classification
Every office must understand its exposure. An office specialising in property development, another focused on family law and a third very active in company law do not have the same profile. The assessment should combine types of deeds, clients (individuals, companies, non-residents, politically exposed persons), the geographical origin of funds and payment methods. It results in a grid classifying files as low, medium or high risk, which determines the level of due diligence to apply.
Customer due diligence and beneficial owners
Identifying the parties to a deed is at the heart of notarial work. AML/CFT due diligence goes further: understanding the purpose of the transaction, its consistency with the client's profile and the source of funds. When a party is a legal person, you must identify the natural person or persons who ultimately own or control it. Consult the CNRC beneficial ownership register, but cross-check it against the articles of association, minutes and the client's statements: outdated or incomplete register data does not release you from your duty.
Three situations call for particular attention:
- real estate transactions: under Article 207 of the 2025 Finance Law, the price of built and undeveloped property must be paid by non-cash means. The notary must check that the payment is traceable through the banking system and consider who the payer really is;
- company formations and share transfers: cash contributions of unclear origin, shareholders with no apparent link to the business, layered structures;
- politically exposed persons: enhanced due diligence, approval at an appropriate level within the office, careful review of the source of wealth.
Suspicious transaction reporting to the CTRF
When you suspect that a transaction, even one merely attempted, involves funds of illicit origin or is linked to terrorist financing, you must report it to the Financial Intelligence Processing Unit (CTRF), attached to the Ministry of Finance. The report is confidential: the client must never be told. An office therefore needs a simple internal process: who spots, who analyses, who decides and who files, with a written record of the analysis, including when the decision is not to report.
Asset freezing and targeted financial sanctions
Before executing a deed, check that the parties and beneficial owners do not appear on sanctions lists, notably those of the United Nations Security Council and the national list. In the event of a confirmed match, the transaction must not proceed and the competent authorities must be informed without delay. This screening must be documented in the file.
Record keeping
Notaries already keep their original deeds. The AML/CFT obligation also covers due diligence evidence: identity documents, proof of source of funds, proof of payment, beneficial ownership register extracts, analysis notes and exchanges with the CTRF. These must be filed so that they can be produced quickly during a Chamber inspection or at the CTRF's request.
Training and internal organisation
The notary remains responsible, but clerks often meet clients and collect documents. They must be trained to recognise red flags and know whom to alert when in doubt. Appoint an AML/CFT lead, write a short and workable procedure, and keep a log of training completed.
3. Sector-specific typologies and red flags
None of the following signals proves anything on its own, but each requires a documented analysis:
- a price clearly below or above market value, with no credible explanation;
- payment made from the account of a third party with no apparent link to the buyer;
- a request to state a price in the deed that differs from the price actually agreed;
- successive purchases and resales of the same property over a short period;
- acquisition by a recently formed company with no real activity and unclear shareholders;
- large capital contributions at company formation with no evidence of origin;
- a client in a hurry, indifferent to price or fees, or insisting on not appearing personally;
- repeated use of agents or powers of attorney without apparent reason;
- a beneficial owner residing in a high-risk country, or an undisclosed politically exposed person;
- gifts or partitions followed by an immediate resale, suggesting the use of nominees.
4. Common mistakes
In regulated legal professions, we often observe the same weaknesses:
- Confusing authentication with due diligence: checking the identity and legal capacity of the parties is not enough; you must also understand the transaction and the source of funds.
- Stopping at the corporate façade: the legal representative is not necessarily the beneficial owner.
- Writing nothing down: an analysis done verbally does not exist for an inspector. A two-line note is often enough.
- Fearing the report: worried about losing clients, some offices never report. Yet a complete absence of reports in an exposed activity is itself a signal to the supervisor.
- Relying on a single person: without a procedure and trained clerks, due diligence disappears as soon as the notary is away.
5. How Hodemia Consulting supports notaries
Hodemia Consulting helps notarial offices turn abstract obligations into a simple framework they can defend before the National Chamber of Notaries:
- Compliance diagnostic (2 to 4 weeks): review of your procedures and a sample of files, identification of gaps and a prioritised action plan. See our article on the compliance diagnostic;
- AML/CFT programme set-up and KYC remediation: office risk assessment, written procedure, identification forms adapted to legal persons, CTRF reporting process;
- Compliance & Ethics training (1 day) for notaries and their clerks, built around practical real estate and corporate cases. Explore our training courses.
To discuss your office's situation, contact us.
Conclusion: making due diligence a reflex in your office
The AML/CFT obligations for notaries are a natural extension of their role as public officers: guaranteeing the legal certainty of deeds also means refusing to let them be used to launder money. The framework is now clear, from amended Law No. 05-01 to Executive Decree No. 23-430 and the non-cash payment requirement in real estate, and the National Chamber of Notaries has the means to enforce it. A realistic risk assessment, rigorous identification of beneficial owners, written records of analyses and trained clerks are enough to turn a constraint into a mark of the office's professionalism.
FAQ: AML/CFT obligations for notaries
Are notaries really subject to Law No. 05-01?
Yes. Law No. 05-01, as amended by Law No. 23-01, expressly lists notaries among designated non-financial businesses and professions. They must therefore apply the preventive measures set by the law: identifying clients and beneficial owners, risk-based due diligence, reporting suspicions to the CTRF, record keeping and implementing targeted financial sanctions. The National Chamber of Notaries oversees compliance with these obligations.
Can a notary execute a property sale paid in cash?
Since the 2025 Finance Law, its Article 207 requires transactions involving built and undeveloped property to be settled by non-cash means such as cheque or bank transfer. The notary must therefore check that the price can be traced through the banking system before drawing up the deed. Split payments, undisclosed side payments or unexplained sources of funds must also be analysed from an AML/CFT perspective.
Why must a notary identify beneficial owners?
Because a company can act as a front for the person who really controls it. When a legal person buys property, when a company is formed or when shares are transferred, the notary must know who ultimately owns or controls the entity. The beneficial ownership register kept by the CNRC is a useful source, but it does not replace cross-checking against the articles of association and the client's statements.
Should the client be told about a suspicious transaction report?
No. A report sent to the CTRF is strictly confidential. Neither the client nor third parties may be informed, directly or indirectly. In a notarial office, this means limiting the number of staff who know about it and agreeing in advance how to respond when the client chases progress on the file. A report made in good faith protects the person who files it.
What does the National Chamber of Notaries check?
Executive Decree No. 23-430 of 29 November 2023 sets out how supervisory authorities act: a risk-based approach, off-site and on-site inspections, reporting of weaknesses found, corrective measures and sanctions for breaches. In practice, expect inspectors to review your procedures, identification files, payment traceability, records and staff training.
Where should a notarial office start?
Start with a risk assessment specific to your office: types of deeds, client profile, share of legal persons, non-residents and unusual transactions. It lets you calibrate identification procedures, the enhanced due diligence grid and the reporting process. Then appoint a responsible person, train your clerks and test the framework on a sample of recent files.
Nearly 20 years of international experience in regulatory compliance, risk and governance (EY in Luxembourg, San Francisco and London; Director, Regulatory & Compliance Services at KPMG Middle East). Certified coach, trainer and academic.