Through an executive decree dated November 2023, the Ministry of Commerce requires all Algerian companies to declare the identity of their beneficial owners. For existing companies, the deadline to complete this procedure ends on November 30, 2024.
This measure strengthens financial transparency and as part of the fight against money laundering and the financing of terrorism.
The terms of application of this new measure, relating to the obligation to declare the beneficial owners of Algerian companies, are set out in Decree No. 23-429, signed by Prime Minister, Nadir Larbaoui, on November 23, 2023.
What does the declaration of the beneficial owner of Algerian companies consist of?
In other words, the decree published in the Official Journal obliges Algerian companies to declare the identity of the natural persons who own them to the National Trade Registry Center (CNRC).
More specifically, this concerns natural persons who hold, directly or indirectly, at least 20% of the share capital of companies or their voting rights or otherwise exercise control over the company.
In this regard, it should be noted that the register of beneficial owners, established with the CNRC, must contain information on the beneficial owners of legal entities under Algerian law.
And this, through ” a public database in which data and information relating to beneficial owners […] are collected and made available to the competent authorities and the public “, we read in the decree.
Concerning the declaration procedures, the decree indicates that any legal entity under Algerian law must declare the beneficial owner to the CNRC services, to which its head office belongs.
This applies to both newly created companies and those existing before the publication of the decree. The latter must comply with these provisions within one year from the date of its publication in the Official Journal.
Here’s how to make the beneficial owner declaration
Given that the decree in question was published at the end of November 2023, the final deadline granted to existing companies to comply with the obligation of effective declaration of their beneficiaries runs until the end of next month, namely November 30, 2024.
The declaration must be submitted by the authorized representatives of the company or by those mandated for this purpose. It must include precise information on the company and the identity of the beneficial owner.
This includes the company, the name or denomination, the registered office, as well as the trade register number. As for the beneficial owner, the declaration must contain:
– Name and surname, date and place of birth, nationality and address and/or place of residence;
– The number of the national identity card of the beneficial owner or passport for foreigners, the date of issue and expiry;
– The date on which the person became a beneficiary;
– Determination of the criteria by which the beneficial owner exercises control over the legal person;
– The name, first name, and signature of the author of the declaration and their capacity within the legal entity.
This file must be accompanied by the beneficial owner declaration form which must be obtained from the CNRC to which the company’s head office belongs and must be completed in two copies, in French and Arabic.
Failure to report is punishable, according to the decree, under the provisions of current legislation, in particular, the law on the prevention and fight against money laundering and the financing of terrorism.
