The European Union has placed Algeria on a provisional blacklist of jurisdictions deemed high-risk for money laundering and terror financing, citing alleged links between Algerian financial networks, jihadist groups in the Sahel, and funding flows to the Polisario Front.

Brussels Flags Sahel Financing Routes

According to Sahel Intelligence, the European Commission’s draft report connects several Algerian institutions and opaque financial flows to unregulated arms transfers and logistical support networks operating in Mali, Burkina Faso, and Niger. These corridors allegedly channel funds toward armed groups affiliated with al-Qaeda and the Islamic State.

Brussels also highlighted increasing evidence of illicit financing reaching the Polisario Front, which seeks independence for Western Sahara and is supported by Algiers.

Algeria Reacts Strongly to EU Draft

The Algerian Foreign Ministry condemned the EU’s classification as “a hostile act and a serious breach of confidence,” accusing Brussels of caving to “pressure from France and Morocco.” Algerian officials claimed the decision is politically motivated and aims to discredit Algeria’s regional influence and diplomatic activism, particularly at the African Union.

Reputational and Banking Implications

Should the blacklist be confirmed, Algerian banks and financial institutions could face restricted access to European markets and tighter compliance measures. Experts warn the move could impact Algerian foreign investments and regional development projects linked to Sahel stabilization and Saharan trade corridors.

Algiers has demanded access to the report’s evidence and vowed to contest the classification at all diplomatic levels.