The new draft monetary and banking law details the conditions and modalities for the establishment of banks, exchange offices and service providers, and draws up a list of persons prohibited from operating, involved in corruption cases, those having background in the country and abroad, and people who have already gone bankrupt.
In the fourth chapter of the new monetary and banking law, and from article 88 to article 103, the financial and monetary authorities determine the conditions and criteria for opening banks and exchange offices, such as the Council must authorize the establishment of any bank, financial institution, broker, exchange office or payment service provider, on the basis of the results of an investigation, linked to compliance with the specific conditions provided for in article 86 of the same law.
Conditions for opening banks and exchange offices
Indeed, these conditions are that a bank or a financial institution cannot be established, managed or have the right to sign therein if a judgment has been rendered against the person concerned by reason of a crime, misappropriation of funds, theft, fraud, issuance of a check without credit, breach of trust or voluntary seizure without right committed by public trustees, extortion of funds or securities, bankruptcy, violation of legislation and foreign exchange regulations, forgery of commercial and private banking papers, breach of company law, and concealment of funds received as a result of any of these breaches.
The draft, which is currently in Parliament, stipulates that any offense committed in drug trafficking, corruption, money laundering and the financing of terrorism falls within the same context, and that if a decision is made against the person concerned by a foreign judicial authority, or if it is declared bankrupt, or if it is annexed to the bankruptcy, or that a judgment is rendered with civil liability. As a member of a bankrupt legal person, whether in Algeria or abroad, unless rehabilitated, as this article applies to independent brokers, foreign exchange offices and to payment services.
According to Article 87, any establishment other than a bank, a financial establishment, an independent intermediary, an exchange office or a payment service provider is prohibited from using a name, trade name, advertisement or , in general, any expression that would lead one to believe that it is approved as a bank, financial institution or independent intermediary, or as an exchange office or payment service provider.
