Key points
- Dealers in precious metals and stones are designated non-financial businesses and professions, required to apply preventive measures; their supervisor is the Directorate General of Taxes (Art. 10 bis 3 of Law No. 05-01 as amended by Law No. 23-01 of 7 February 2023).
- An AML/CFT regulation specific to dealers in precious stones and metals was put in place by an order of the Minister of Finance dated 3 July 2025, published in Official Journal No. 57 of 24 August 2025; it covers, among others, manufacturers and craftspeople of articles made of precious stones and metals.
- Due diligence applies to any occasional transaction, single or split, reaching or exceeding DZD 2,000,000 (Art. 7 of the regulation annexed to the order of 3 July 2025).
- Records must be kept for at least five years from the close of each transaction, and an annual report must be submitted to the DGI within three months of the financial year-end (Art. 17 and 27 of the regulation annexed to the order of 3 July 2025).
- Algeria was removed from the FATF grey list on 19 June 2026; the next mutual evaluation is expected around 2029 (FATF, MENAFATF).
Updated October 26, 2026
In this article
Gold holds a special place in the Algerian economy: a safe haven, family savings, a wedding gift. That is precisely what makes it attractive for money laundering. It concentrates high value in a small volume, travels easily, can be resold anywhere and is still often paid for in cash. A jewellery purchase can thus turn banknotes of dubious origin into an apparently legitimate asset. The AML/CFT obligations for dealers in precious metals and stones, jewellers included, aim to close that door.
Algeria left the FATF grey list on 19 June 2026, but the next mutual evaluation, expected around 2029, will focus on the practical effectiveness of AML/CFT frameworks, including in non-financial professions. According to the summary of the Directorate General of Taxes' sectoral risk assessment, reported by the press in September 2025, the sector is still marked by widespread cash use, superficial knowledge of the rules and very few suspicious transaction reports. With the regulation published in August 2025, professionals now have precise rules: the task is to apply them.
1. Applicable texts and supervisory authority
Law No. 05-01 of 6 February 2005, substantially overhauled by Law No. 23-01 of 7 February 2023 (OJ No. 08 of 2023), lists dealers in precious metals and stones among designated non-financial businesses and professions (DNFBPs). They are "obliged entities", required to apply preventive measures, including suspicious transaction reporting. Article 10 bis 3 of the law designates the Directorate General of Taxes (DGI) as their supervisory authority. To understand the reform, read our article on Law 23-01 on money laundering in Algeria.
On the basis of Executive Decree No. 23-430 of 29 November 2023, an order of the Minister of Finance dated 3 July 2025, published in Official Journal No. 57 of 24 August 2025, puts in place a regulation on preventing and combating money laundering, terrorist financing and proliferation financing for dealers in precious stones and metals. Its Article 2 covers a wide range of players: manufacturers and craftspeople of articles made of precious stones and metals, wholesale and retail dealers, exporters and itinerant sellers. The word "jeweller" does not appear, but a jeweller who makes or sells such articles is covered. The regulation designates the DGI as the control and supervisory authority and the CTRF as the specialised body.
Law No. 25-10 of 24 July 2025 completes the framework, providing for a national and sectoral risk assessment that is regularly updated and shared with obliged entities.
2. Key obligations
Risk classification
The regulation requires a risk-based approach applied to clients and transactions, including occasional ones. In practice, this means identifying what exposes your business: walk-in customers, large cash purchases, buying back old gold from individuals, sales to resellers, transactions with foreign parties. Due diligence measures are then calibrated to that risk level.
Customer due diligence and beneficial owners
Due diligence applies to every business relationship and to any occasional transaction reaching or exceeding DZD 2,000,000, with linked transactions added together, as well as to occasional transactions paid electronically (Art. 7). It also applies, whatever the amount, where there is suspicion or doubt about identity data already collected. For an individual, identity is established on an official document: national identity card, driving licence or, for foreigners, passport; a trader also provides their commercial register extract or craftsperson card and tax identification number (Art. 8). The powers of agents and intermediaries are verified. For a legal person, the beneficial owner is in particular the natural person holding at least 20% of the capital or voting rights (Art. 2 and 10). Politically exposed persons call for enhanced due diligence and authorisation, as the case may be, from the specialised body or the DGI before the relationship is established or continued (Art. 15).
Suspicious transaction reports to the CTRF
Any suspicious transaction, even attempted, is reported to the CTRF, within the Ministry of Finance. The report is strictly confidential: the client must never be informed. The regulation makes the compliance officer responsible for informing the CTRF, and its Article 26 also refers to commercial cash transactions of DZD 2,000,000 or more. A good report describes the facts and the inconsistency observed, and attaches available documents. For the general rules, see our guide to AML/CFT compliance in Algeria.
Asset freezing and targeted financial sanctions
The regulation requires sanctions lists to be checked each time they are updated (Art. 31) and decisions taken by the United Nations Security Council under Chapter VII of the Charter to be implemented immediately (Art. 32). A client or beneficial owner on a list cannot be served: the transaction is blocked and the authorities are informed without delay.
Record keeping
Client and transaction records are kept for at least five years from the close of each transaction, as are the analyses and checks performed (Art. 17). A well-kept register, on paper or digital, is the best protection during a DGI inspection.
Training and internal organisation
The obliged entity appoints one of its employees as compliance officer; with no employees, it takes on the role itself (Art. 26). An annual report on the AML/CFT framework is submitted to the DGI no later than three months after the financial year-end (Art. 27). Failure to comply exposes the business to the sanctions provided for by the legislation in force (Art. 33). Training sales staff in red flags is essential: they are the ones who see the client.
3. Sector-specific typologies and red flags
- a client paying large sums in cash, often in small denominations, and refusing any other payment method;
- purchases split over several days or shops to stay below the DZD 2,000,000 threshold;
- a client interested in the weight of gold and its resale value rather than the design of the piece;
- purchases followed by rapid resales, sometimes at a loss, with no apparent logic;
- an individual regularly selling large quantities of gold or stones without being able to justify their origin;
- a third party paying on the client's behalf, or an intermediary refusing to reveal the final buyer;
- stones or bars accompanied by inconsistent documents, or unusual requests for delivery abroad;
- a politically exposed person, or a relative, making purchases out of line with known income.
4. Common mistakes
In this sector, made up mostly of small shops and craftspeople, we see recurring gaps:
- Thinking AML/CFT only concerns banks, whereas the law expressly covers dealers in precious metals and stones.
- Failing to identify the client above the threshold, or agreeing to "split" a sale to avoid it.
- Confusing tax records with a client file: an invoice does not replace a copy of the ID document or an analysis of the transaction.
- Never reporting, for fear of losing the client or through unfamiliarity with the CTRF.
- Ignoring sanctions lists and not knowing where to consult them.
- Forgetting the annual report due to the DGI.
5. How Hodemia Consulting supports dealers in precious metals and stones
Fayçal Lounes, with nearly twenty years of international compliance experience at EY and then as Director of Regulatory & Compliance Services at KPMG Middle East, adapts the regulation's requirements to the reality of a jewellery shop or workshop:
- Compliance diagnostic (2 to 4 weeks): review of your practices against the order of 3 July 2025 and a prioritised action plan. See our approach to the compliance diagnostic.
- AML/CFT programme implementation and KYC remediation: simple client form, transaction register, reporting procedure, sanctions screening, annual report template.
- Compliance & Ethics training (1 day): red flags and case studies for sales staff and craftspeople.
- Leadership & Compliance seminar (2 days): for heads of groups and distribution networks.
See our training programmes or contact us. To position the function, also read our guide to the compliance function in Algeria.
Conclusion: trust, the profession's first capital
Since the order of 3 July 2025, the AML/CFT obligations for dealers in precious metals and stones have been clearly defined: a risk-based approach, identification at the DZD 2,000,000 threshold, beneficial owners, enhanced due diligence for PEPs, reporting to the CTRF, five-year record keeping and an annual report to the DGI. For a trade built on trust, these rules are not merely a constraint: they protect the business's reputation against unwanted clients. Professionals who get organised now will face DGI inspections and the FATF evaluation expected around 2029 with confidence.
FAQ: AML/CFT obligations for jewellers and dealers in precious metals
Is a jeweller covered by Law No. 05-01?
Yes, as soon as they make or sell articles made of precious metals or stones. Amended Law No. 05-01 lists dealers in precious metals and stones among designated non-financial businesses and professions, and the regulation put in place by the order of 3 July 2025 covers, among others, manufacturers and craftspeople of articles made of precious stones and metals, as well as wholesale and retail dealers.
Who supervises jewellers for AML/CFT purposes?
The Directorate General of Taxes. Article 10 bis 3 of Law No. 05-01 as amended by Law No. 23-01 designates it as the supervisor of dealers in precious metals and stones, and the 2025 regulation names it as the control and supervisory authority. Suspicious transaction reports, however, go to the CTRF, Algeria's financial intelligence unit within the Ministry of Finance.
From what amount must the client be identified?
For an occasional transaction, as soon as it reaches or exceeds DZD 2,000,000, including where several linked transactions are added together. The regulation also covers occasional transactions paid electronically. Where money laundering or terrorist financing is suspected, or there is doubt about identity data already collected, due diligence applies whatever the amount. An ongoing business relationship always triggers due diligence.
Which documents should be requested from a client?
For an individual, the regulation cites official documents such as the national identity card, the driving licence and, for foreigners, the passport. A trader must also provide their commercial register extract or craftsperson card and their tax identification number. Where someone acts on a client's behalf, their identity and the powers granted to them must be verified.
What if the client is a politically exposed person?
The regulation requires a risk management system to determine whether the client or beneficial owner is a politically exposed person. If so, enhanced due diligence applies, and establishing or continuing the relationship requires authorisation, as the case may be, from the specialised body or the Directorate General of Taxes. The source of funds also deserves close attention.
I work alone: do I need to appoint a compliance officer?
The regulation requires the obliged entity to appoint one of its employees as compliance officer. If it has no employees, the obliged entity itself takes on this role. It is therefore up to you personally to keep client files, screen sanctions lists, report suspicions to the CTRF and prepare the annual report for the DGI.
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.