ORDINANCE NO. 03-11 OF AUGUST 26, 2003
RELATING TO MONEY AND CREDIT
The president of the Republic ;
– Having regard to the Constitution, in particular its articles 122-15 ° and 124;
– Considering the law n ° 62-144 of December 13, 1962 establishing and fixing the statutes of the Central Bank of Algeria;
– Considering the ordinance n ° 66-154 of June 8, 1966, modified and supplemented, relating to the code of civil procedure;
– Considering the ordinance n ° 66-155 of June 8, 1966, modified and supplemented, relating to the code of penal procedure;
– Considering the ordinance n ° 66-156 of June 8, 1966, modified and supplemented, relating to the penal code;
– Considering the ordinance n ° 75-58 of September 26, 1975, modified and supplemented, relating to the civil code;
– Considering the ordinance n ° 75-59 of September 26, 1975, modified and supplemented, relating to the commercial code;
– Considering the law n ° 84-17 of July 7, 1984, modified and supplemented, relating to the finance laws;
– Considering the law n ° 90-10 of April 14, 1990, modified and supplemented, relating to money and credit;
– Considering the law n ° 90-30 of December 1st, 1990 relating to the domain law;
– Considering the ordinance n ° 03-03 of 19 Joumada El Oula 1424 corresponding to July 19, 2003 relating to competition;
The Council of Ministers heard;
Promulgates the ordinance, the content of which follows:
Article 1. – The monetary unit of the People’s Democratic Republic of Algeria is the Algerian dinar, abbreviated DA
The DA is divided into one hundred equal parts called centimes, abbreviated CTS.
Art. 2. – Fiduciary money consists of banknotes and metallic coins.
The privilege of issuing, on the national territory, the fiduciary currency belongs to the State.
The exercise of this privilege is delegated exclusively to the central bank, which is hereinafter referred to in its relations with third parties, “Bank of Algeria”, and which is governed by the provisions of this ordinance.
Art. 3. – The following are determined by regulation made in accordance with the provisions of this ordinance:
– issuance of banknotes and metallic coins;
– the recognizing signs of a banknote or of a metallic coin, in particular their face value, dimensions, type and other characteristics;
– the conditions and methods of control of manufacture and destruction of banknotes and metallic coins.
Art. 4. – Banknotes and metallic coins issued by the Bank of Algeria are only legal tender to the exclusion of all others. They have unlimited discharge power.
Art. 5. – Banknotes and metallic coins which would be the subject of a measure of withdrawal from circulation lose their discharge capacity if they are not presented for exchange within ten (10) years.
Their equivalent value will then be acquired by the Public Treasury.
Art. 6. – No opposition can be served on the Bank of Algeria in the event of loss, theft, destruction or seizure of banknotes or metallic coins issued by it.
Art. 7. – It is forbidden for anyone to issue, put into circulation or accept:
– any instrument denominated in Algerian Dinars intended to serve as a means of payment instead of the national currency;
– any sight bond to bearer not bearing interest, even denominated in foreign currency.
Art. 8. – Counterfeiting and falsification of banknotes or metallic coins, issued by the Bank of Algeria or by any other legal foreign monetary authority, as well as the introduction, use, sale, peddling and the distribution of such counterfeit or falsified banknotes or coins, will be punished in accordance with the penal code.
STRUCTURE, ORGANIZATION AND OPERATIONS
OF THE BANQUE D’ALGERIE
Art. 9. – National establishment endowed with legal personality as well as financial autonomy, the Bank of Algeria is considered to be a merchant in its relations with third parties.
It is governed by commercial law to the extent that it is not derogated from it by the provisions of this ordinance.
It follows the rules of commercial accounting. It is neither subject to the requirements of public accounting nor to the control of the Court of Auditors.
Art. 10. – The capital of the Bank of Algeria is fully subscribed by the State.
Art. 11. – The headquarters of the Bank of Algeria is in Algiers.
The Bank of Algeria establishes branches or agencies in all localities where it deems necessary.
Art. 12. – The dissolution of the Bank of Algeria can be pronounced only by a law, which will fix the modalities of its liquidation.
MANAGEMENT AND SUPERVISION OF THE BANQUE D’ALGERIE
MANAGEMENT OF THE BANK OF ALGERIA
Art. 13. – The management of the Bank of Algeria is ensured by a governor assisted by three vice-governors, all appointed by decree of the President of the Republic.
Art. 14. – The office of governor is incompatible with any elective mandate, any government office and any public function. It is the same for the function of vice-governor.
With the exception of the representation of the State in international public institutions of a monetary, financial or economic nature, the governor and vice-governors may not, during their mandate, exercise any activity, profession or function.
They may not borrow any amount from any institution whatsoever, Algerian or foreign, and no commitment bearing the signature of one of them may be admitted into the portfolio of the Bank of Algeria or that of no institution operating in Algeria.
Art. 15. – The salary of the governor as well as that of the vice-governors are fixed by decree. They are the responsibility of the Bank of Algeria.
At the end of the exercise of their function, except in the event of dismissal for gross negligence, the governor and the vice-governors or possibly their heirs receive an indemnity equal to the two-year salary which is payable by the Bank of Algeria and this, to the exclusion of any other amount paid by it.
During a period of two years after the end of their mandate, the Governor and the vice-governors may neither manage nor enter the service of an establishment subject to the authority or control of the Bank of Algeria, or of a company dominated by such an establishment, nor serve as agents or advisers to such establishments or companies.
Art. 16. – The Governor ensures the management of the affairs of the Bank of Algeria.
The Governor of the Bank of Algeria, hereinafter called “Governor”, takes all execution measures and performs all acts within the framework of the law.
He signs, on behalf of the Bank of Algeria, all agreements, financial statements, balance sheets and income statements.
He represents the Bank of Algeria with the public authorities in Algeria, foreign central banks, international financial organizations and, in general, with third parties.
Legal actions are brought and defended at its prosecution and diligence. He takes all protective measures he deems useful.
It carries out all duly authorized real estate acquisitions and alienations. It organizes the services of the Bank of Algeria and defines their tasks.
He recruits, appoints to their post, advances in rank, dismisses and dismisses the agents of the Bank of Algeria, under the conditions provided for by the staff regulations.
It appoints the representatives of the Bank of Algeria within the boards of other institutions when such representation is foreseen.
Art. 17. – The Governor determines the attributions of each vice-governor and specifies his powers.
He can delegate signature to agents of the Bank of Algeria.
He can, for the needs of the service, constitute, among the executives of the Bank of Algeria, special representatives.
ADMINISTRATION OF THE BANK OF ALGERIA
Art. 18. – The Board of Directors is made up of:
– the Governor, president;
– the three vice-governors;
– the three officials of the highest rank,
appointed by decree of the President of the Republic because of their competence in economic and financial matters.
In the event of absence or vacancy in their functions, officials are replaced by their deputies appointed under the same conditions.
Art. 19. – The Bank of Algeria is administered by a Board of Directors, which is invested with the following powers:
– it deliberates on the general organization of the Bank of Algeria as well as on the opening or suppression of agencies and branches;
– it decides the regulations applicable to the Bank of Algeria;
– it approves the staff statute and the remuneration system for the agents of the Bank of Algeria;
– it deliberates on the initiative of the Governor on all agreements;
– it rules on real estate acquisitions and alienations;
– it decides on the advisability of legal actions to be taken on behalf of the Bank of Algeria and authorizes compromises and transactions;
– he decides for each year the budget of the Bank of Algeria;
– it determines the conditions and the form in which the Bank of Algeria establishes and closes its accounts;
– he decides on the distribution of profits and approves the draft report that the Governor sends in his name to the President of the Republic;
– all matters relating to the management of the Bank of Algeria are reported to him.
Art. 20. – In the exercise of their mandate as members of the board of directors, the officials and their replacements sit as-quality.
Art. 21. – The board of directors determines the attendance fees of the three officials as well as the conditions under which their possible travel and subsistence expenses are reimbursed to them.
Art. 22. – The Governor convenes and chairs the board of directors and sets the agenda for its sessions. In his absence, the session is chaired by the vice-governor who acts as interim governor.
The board of directors meets when convened by its chairman as often as necessary. It is convened if three members so request.
Art. 23. – The board of directors adopts its internal regulations.
Art. 24. – The presence of at least four of the members of the board of directors is necessary for the holding of its meetings.
No member can give mandate to be represented.
Decisions are taken by a simple majority of the members present; in the event of a tie, the president’s vote is decisive.
Art. 25. – Without prejudice to the obligations imposed on them by law, and except in cases where they are called to testify in criminal matters, the members of the board of directors may not engage in any disclosure, directly or indirectly, facts or information of which they are aware within the framework of their mandate.
The same obligation is imposed on any person to whom the board of directors has recourse for the exercise of its mission.
SUPERVISION AND CONTROL OF THE BANK OF ALGERIA
BY THE CENSORSHIP
Art. 26. – The supervision of the Bank of Algeria is ensured by the Censorship composed of two censors appointed by decree of the President of the Republic.
The two censors work full time on secondment from their home administration. Their functions are terminated in the same forms.
The two censors must have knowledge, in particular financial and central bank accounting, enabling them to carry out their mission.
The terms of their remuneration are set by regulation.
The organization of the censorship as well as the human and material resources made available to it are defined by the board of directors.
Art. 27. – The censors exercise general supervision over all the services and all the operations of the Bank of Algeria. They exercise particular supervision over the risk center and the delinquency center, as well as the organization and functioning of the money market.
The observers can carry out jointly or separately the checks or controls they deem appropriate.
They attend the sessions of the board of directors in an advisory capacity. They inform the board of directors of the results of the checks they have carried out.
They can present to him any proposals or remarks they deem useful. If their proposals are not accepted, they may request that they be entered in the register of deliberations. They inform the minister in charge of finance.
They report to the Board of Directors on the audits of the year-end accounts and any amendments they propose.
They also send a report to the Minister in charge of finance within four months of the end of the financial year; a copy is communicated to the Governor.
The Minister in charge of finance may ask them, at any time, for reports on specific questions falling within their competence.
ANNUAL ACCOUNTS AND PUBLICATIONS
Art. 28. – The accounts of the Bank of Algeria are closed on December 31 of each year.
The income net of all depreciation, charges and provisions constitutes the annual profits. From these profits, 10% is deducted for the benefit of the legal reserve. This deduction ceases to be compulsory as soon as the reserve reaches the amount of the capital. After allocation of the allocations deemed necessary by the board of directors to general and special reserves, the balance is paid to the Treasury. Reserves can be allocated to capital increases.
Art. 29. – Within three months of the end of each financial year, the Governor transmits to the President of the Republic the balance sheet and the income statement as well as a report giving an account of the operations and activities of the Bank of Algeria, in particular those relating to the banking supervision activity carried out during the year, the state of the prudential situation of banks and financial institutions and the lessons learned from the risk centralization activity. At the latest one month after this transmission, the balance sheet and the profit and loss accounts are published in the Official Journal of the People’s Democratic Republic of Algeria.
The Governor periodically sends to the President of the Republic, with communication to the Money and Credit Council and to the Banking Commission, a report on banking supervision.
The Governor also submits annually to the President of the Republic, with communication to the Head of Government, after hearing the Currency and Credit Council, the following documents:
– a report on the management of foreign exchange reserves;
– a report on the management of the external debt including an analysis of the situation and the outlook for the external solvency of the economy.
Art. 30. – The Bank of Algeria publishes an annual report on the economic and monetary development of the country which contains in particular the elements necessary for a good understanding of the monetary policy, this report gives rise to a communication to the National People’s Assembly followed of a debate.
The Bank of Algeria can publish statistical documentations and economic and monetary studies.
Art. 31. – The Bank of Algeria sends the Minister in charge of finance the situation of its accounts closed at the end of each month. This situation is published in the Official Journal of the People’s Democratic Republic of Algeria.
EXEMPTIONS AND PRIVILEGES
Art. 32. – Notwithstanding the provisions of article 13 of law n ° 84-17 of July 7, 1984 relating to finance laws, the Bank of Algeria is exempt on all operations related to its printing activity, from all taxes, duties, taxes or fiscal charges of any kind.
All contracts, all bills and generally all documents and acts relating to operations processed by the Bank of Algeria in the direct exercise of its powers are exempt from stamp and registration duty.
Art. 33. – The Bank of Algeria is exempt, during any procedure, from providing surety or advance in all cases where the law provides for this obligation to be borne by the parties, as well as all legal costs and taxes collected for the benefit of the state.
Art. 34. – The State ensures the security and protection of the establishments of the Bank of Algeria and provides the latter free of charge with the escorts necessary for the security of transfers of funds or values.
POWERS AND OPERATIONS
OF THE BANQUE D’ALGERIE
Art. 35. – The mission of the Bank of Algeria is to create and maintain in the areas of currency, credit and exchange, the most favorable conditions for rapid development of the economy, while ensuring internal stability and external currency.
To this end, it is responsible for regulating monetary circulation, directing and controlling, by all appropriate means, the distribution of credit, ensuring the proper management of financial commitments with regard to foreign countries and regulating the foreign exchange market.
Art. 36. – The Bank of Algeria is consulted by the Government on any draft law and regulatory text relating to finance and currency.
It can propose to the Government any measure likely to exert a favorable action on the balance of payments, the movement of prices, the situation of public finances and, in general, the development of the economy.
It informs it of any fact likely to affect monetary stability.
It can ask banks and financial institutions as well as financial administrations to provide it with any statistics and information it deems useful for knowing the evolution of the economic situation, currency, credit, balance of payments and external debt.
It defines the terms and conditions of credit operations with foreign countries and authorizes them, except in the case of loans made by the State or on its behalf.
It centralizes all the information useful for controlling and monitoring financial commitments abroad and communicates them to the Minister responsible for finance.
Art. 37. – The Bank of Algeria assists the Government in its relations with multilateral and international financial institutions. If necessary, it can represent it both in these institutions and in international conferences.
It participates in the negotiation of international payment, exchange and clearing agreements; it is responsible for their execution.
It concludes any technical arrangement relating to the terms of implementation of the said agreements. The possible execution of these agreements by the Bank of Algeria is carried out on behalf of the State.
ISSUE OF CURRENCY
Art. 38. – The Bank of Algeria issues fiduciary money under the conditions of cover which are determined by regulation made in accordance with subparagraph a) of article 62 below.
Currency coverage includes the following:
– gold bars and gold coins;
– foreign currency ;
– goods of treasure ;
– rediscount, repo or pledge effects.
Art. 39. – The gold reserve available to the Bank of Algeria is the property of the State. The Bank of Algeria can carry out all operations on gold, in particular purchase, sale, loan and pledge, in cash and in term.
Gold holdings can be used as collateral for any advance intended for the active management of external public debt.
In this case, the Money and Credit Council is heard and the President of the Republic is informed.
Art. 40. – The Bank of Algeria can buy, sell, discount, rediscount, put or repurchase, give or take as a pledge, put or receive in deposit all instruments of payment denominated in foreign currencies as well as all assets in foreign currencies.
It manages and invests foreign exchange reserves. In this context, it can contract loans and subscribe to financial instruments denominated in foreign currencies and regularly listed in first category on international financial centers.
The methods for managing foreign exchange reserves are defined by the Currency and Credit Council in accordance with Article 62 paragraph n) below.
Art. 41. – The terms and conditions for rediscounting, taking and repoing and advances on bills in national currency by the Bank of Algeria are fixed by regulation of the Currency and Credit Council. The outstanding amount of operations on public paper carried out by the Central Bank, provided for in the preceding articles, is set in accordance with the objectives of monetary policy.
Art. 42. – The Bank of Algeria can grant to banks advances on gold coins and ingots, on foreign currencies and on public and private bills.
In any case, the duration of these advances may not exceed one year.
Art. 43. – The Bank of Algeria may grant current account loans to banks for a period of one year at most. These credits must be secured by pledges on treasury bills, gold, foreign currencies or bills eligible for discount under regulations made in the matter by the Currency and Credit Council.
Art. 44. – In the cases provided for in the above articles, the borrower subscribes to the Bank of Algeria the commitment to repay at maturity the amount of credit granted to him.
A regulation of the Currency and Credit Council will specify the terms and conditions for implementing the provisions of this article as well as those of article 43 above.
Art. 45. – The Bank of Algeria may, within the limits and according to the conditions set by the Money and Credit Council, intervene in the money market and, in particular, buy and sell public and private bills eligible for rediscount. or advances.
Under no circumstances may these transactions be processed for the benefit of the Treasury or of the issuing local authorities.
Art. 46. - On a contractual basis, and within the limit of a maximum equal to ten percent (10%) of the ordinary revenue of the State recorded during the previous fiscal year, the Bank of Algeria may grant to the Treasury overdrafts in a current account, the total duration of which may not exceed 240 days, consecutive or not, during a calendar year.
Authorized overdrafts give rise to the collection of a management fee, the rate and terms of which are set in agreement with the Minister in charge of finance.
These advances must be repaid before the end of each fiscal year.
The Bank of Algeria is also authorized to exceptionally grant the Public Treasury an advance intended exclusively for the active management of the external public debt.
The terms of implementation of this advance and its repayment, in particular the schedule thereof, are fixed by agreement between the Central Bank and the Public Treasury, after hearing the Money and Credit Council. The President of the Republic is informed thereof.
Art. 47. – The Bank of Algeria can discount or repo drafts and guaranteed bonds subscribed to the order of the Treasury accountants and maturing within three (3) months.
Art. 48. – The Bank of Algeria maintains with the postal check center assets corresponding to its normally foreseeable needs.
Art. 49. – The Bank of Algeria is the financial agent of the State for all its cash, banking and credit operations.
It maintains the Treasury’s current account free of charge and carries out free of charge all transactions initiated to debit or credit this account. The credit balance of the current account produces interest at a rate of 1% lower than that applied to the debit balance. The latter rate is set by the Currency and Credit Council.
The Bank of Algeria provides free of charge:
– public placement of loans issued or guaranteed by the State;
– payment, concurrently with public funds, of coupons for securities issued or guaranteed by the State.
Art. 50. – The Bank of Algeria can ensure:
– the financial service of the loans of the State as well as the custody and the management of the transferable securities belonging to the latter.
For communities and public establishments:
* the financial service and the placement of their loans;
* the payment of coupons for the securities they have issued;
* the operations provided for in article 49 above.
Art. 51. – The Bank of Algeria can carry out all banking operations with banks and
financial institutions operating in Algeria and with any foreign central bank.
It can only deal with foreign currency transactions with banks operating abroad.
Art. 52. – Each bank operating in Algeria must maintain with the Bank of Algeria a credit current account for the purposes of compensation.
Art. 53. – The Bank of Algeria can invest its own funds:
- a) in buildings, in accordance with the provisions of article 54 below;
- b) in securities issued or guaranteed by the State;
- c) in financing operations of social or national interest;
- d) after authorization from the Minister responsible for finance, in securities issued by financial bodies governed by specific legal provisions.
The total investments made by virtue of subparagraphs c) and d) above may not exceed 40% of its own funds, except with the authorization of the Currency and Credit Council.
Art. 54. – The Bank of Algeria may, for its needs, acquire, build, sell and exchange buildings. These operations are subject to the authorization of the board of directors, and can only be carried out with own funds.
Art. 55. – To cover itself with its doubtful or past due debts, the Bank of Algeria can:
– take all guarantees, in the form of pledges or mortgages;
– acquire out of court or by forced sale any movable or immovable property. The property thus acquired must be alienated within two (2) years, unless they are used for the needs of its operation.
Art. 56. – The Bank of Algeria organizes and supervises the clearing houses and ensures the proper functioning and security of payment systems in accordance with the regulations of the currency and credit council.
Art. 57. – The costs of the clearing houses are borne by the banks.
THE MONEY AND CREDIT COUNCIL
COMPOSITION OF THE MONEY AND CREDIT COUNCIL
Art. 58. – The Money and Credit Council, hereinafter called the “Council”, is made up of:
– members of the board of directors of the Bank of Algeria;
– two personalities chosen for their competence in economic and monetary matters.
Art. 59. – The two personalities are appointed members of the Council by decree of the President of the Republic.
These members deliberate and take part in votes within the Board in complete freedom.
Art. 60. – The Council is chaired by the Governor who convenes it and sets the agenda. The Council adopts its rules of procedure. Decisions are taken by simple majority of votes; in the event of a tie, the president’s vote is decisive.
It holds at least four ordinary sessions per year and can be convened as often as necessary, on the initiative of its President or two (2) of the members of the council who then propose an agenda. The presence of at least six (6) of the members of the board is necessary for the holding of its meetings. No adviser can give a mandate to be represented at Board meetings.
It determines the attendance fees of its members as well as the conditions under which any costs incurred by its members are reimbursed.
It can set up advisory committees from among its members, the missions of which it sets.
Art. 61. – The obligations provided for in article 25 above apply to the members of the Board, as well as to any person to whom the latter may have recourse in any capacity.
POWERS OF THE COUNCIL
Art. 62. – The Council is vested with powers as a monetary authority, in areas relating to:
- a) the issue of currency, as provided for in Articles 4 and 5 of this Ordinance, as well as its coverage;
- b) the norms and conditions of the operations of the Central Bank, in particular with regard to the discount, repo and pledge of public and private bills, and operations on precious metals and currencies;
- c) the definition, conduct, monitoring and evaluation of monetary policy;to this end, the Council sets the monetary objectives, in particular as regards the evolution of monetary and credit aggregates and decides on the monetary instrumentation as well as the establishment of the rules of prudence on the money market and ensures the dissemination of information on the market aimed at avoiding the risk of default;
- d) clearing houses;
- e) the functioning and security of payment systems;
- f) the conditions for the authorization and creation of banks and financial establishments as well as those for the establishment of their networks, in particular the setting of the minimum capital of banks and financial establishments, as well as the terms of its release;
- g) the conditions for opening representative offices of foreign banks and financial institutions in Algeria;
- h) the standards and ratios applicable to banks and financial institutions, in particular as regards the coverage and distribution of risks, liquidity, solvency and risks in general;
- i) protection of customers of banks and financial institutions, in particular with regard to transactions with these customers;
- j) the accounting standards and rules applicable to banks and financial institutions, taking into account international developments in this area, as well as the terms and deadlines for the communication of accounts and statistical accounting statements and situations to all entitled persons and in particular to the Bank of Algeria;
- k) the technical conditions for exercising the banking profession and the banking and financial advisory and brokerage professions;
- l) the definition of the objectives of the exchange rate policy and the mode of exchange regulation;
- m) foreign exchange regulations and the organization of the foreign exchange market;
- n) management of foreign exchange reserves.
The Board takes the following individual decisions:
- a) authorization to open banks and financial institutions, modify their statutes and withdraw their authorization;
- b) authorization to open representative offices of foreign banks;
- c) delegation of powers with regard to the application of foreign exchange regulations;
- d) those relating to the application of the regulations issued by the Council.
The Council shall exercise its powers, within the framework of this Ordinance, by means of regulations.
The Council hears the Minister responsible for finance, at the latter’s request. It is consulted by the Government each time it must deliberate on questions concerning currency or credit or which may have repercussions on the monetary situation.
Art. 63. – Before their promulgation, the Governor communicates, within two days of their approval by the Council, the draft regulations to the Minister in charge of finance, who has ten (10) days to request their modification.
The Governor must then convene the Council within five (5) days and submit to it the proposed modification.
The new decision of the Council, whatever it is, is enforceable.
Art. 64. – The regulation which has become enforceable is promulgated by the Governor and published in the Official Journal of the People’s Democratic Republic of Algeria.
The regulations are enforceable against third parties as soon as they are published.
In case of emergency, they are inserted in two dailies appearing in Algiers and then become enforceable against third parties upon completion of this formality.
Art. 65. – A regulation promulgated and published as indicated in article 64 above can only be the subject of an action for annulment lodged by the Minister in charge of finance before the Council of State. This appeal is not suspensive.
The appeal must, under penalty of foreclosure, be presented within sixty (60) days from the date of publication.
Decisions on banking activities are promulgated by the Governor. Those taken by virtue of subparagraphs a), b), and c) are published in the Official Journal of the People’s Democratic Republic of Algeria. The others are notified in accordance with the Code of Civil Procedure.
Only an action for annulment is open against decisions taken under article 62 above in respect of banking activities.
This appeal is only open to natural or legal persons directly affected by the decision.
It must be presented, under penalty of foreclosure, within sixty (60) days of the publication or notification of the decision, as the case may be, subject to the provisions of article 87 below.
Art. 66. – Banking operations include the receipt of funds from the public, credit operations as well as the provision of means of payment to customers and their management.
Art. 67. – Funds collected from third parties, in particular in the form of deposits, with the right to dispose of them for their own account, but on condition of returning them are considered as funds received from the public.
However, the following are not considered to be funds received from the public, within the meaning of this ordinance:
– funds remitted or left in account by shareholders holding at least five percent (5%) of the capital, directors and managers;
– funds from participatory loans.
Art. 68. – Constitutes a credit transaction, within the meaning of this ordinance, any act for consideration by which a person places or promises to make funds available to another person or takes, in the interest of that person. ci, a commitment by signature such as endorsement, bond or guarantee.
Leasing transactions accompanied by purchase options, are assimilated to credit transactions,
in particular leasing. The powers of the Board are exercised with regard to the transactions referred to in this article.
Art. 69. – Are considered as means of payment all the instruments which allow any person to transfer funds and this, whatever the medium or the technical process used.
Art. 70. – Only banks are authorized to carry out, as a usual profession, all the operations described in articles 66 to 68 above.
Art. 71. – Financial institutions may neither receive funds from the public, nor manage means of payment or make them available to their customers.
They can perform all other operations.
Art. 72. – Banks and financial institutions may carry out all the related operations below:
– foreign exchange transactions;
– transactions in gold, precious metals and coins;
– investments, subscriptions, purchases, management, custody and sale of transferable securities and any financial product;
– advice and assistance in asset management;
– financial advice, management and engineering and, in general, all services intended to facilitate the creation and development of businesses or facilities while respecting the legal provisions in this area.
Art. 73. – By way of derogation from the provisions concerning subscriptions, banks and financial institutions may collect funds from the public intended to be invested in participations with a company in accordance with all legal terms such as in shares, investment certificates, shares companies, sponsorships or others.
These funds are subject to the following conditions:
- they are not considered as deposits within the meaning of article 67 above, third parties remaining owners;
- they are not interest bearing;
- until their investment, they must be deposited with the Bank of Algeria in a special account relating to each planned investment;
4.a contract must be signed between the depositor and the depositary specifying:
– the name, object, capital and registered office of the company which will receive the funds;
– the project or program for which these funds will be used;
– the conditions for sharing profits and losses;
– the conditions for the sale of shareholdings;
– the conditions for depreciation of investments by the company itself;
– the conditions under which the bank or the financial institution will return the funds to third parties in the event that the participation is not carried out;
- participation must take place within six (6) months at the latest from the date of the first payment made by the participants.This period may be preceded by another period of six (6) months in the event that the registrations are met without payment;
6.in case of non-realization of the participation or of impossibility to realize it for any reason whatsoever, the bank or the financial institution which collected the funds must make them available to their owners in the week following the finding;
- the Council shall adopt by by-law the other conditions, in particular those relating to the default of one or more subscribers;
- banks and financial institutions are entitled to an investment commission which is due, even if paragraph 6) above is applied, as well as to an annual commission in the event of management;
- these transactions are, moreover, subject to the rules of the mandate.
Art. 74. – Banks and financial institutions can take and hold participations.
These should not exceed, for banks, the limits set by the Money and Credit Council.
Art. 75. – Banks and establishments may not exercise, on a regular basis, an activity other than those mentioned in the preceding articles unless they are authorized to do so under regulations made by the Council.
The activities referred to in the previous paragraph must, in any event, remain of limited importance compared to all the activities of the bank or financial institution. Their exercise must not prevent, restrict or distort competition.
Art. 76. – It is forbidden for any natural or legal person, other than a bank or financial institution, as the case may be, to carry out the operations which they carry out in a usual manner by virtue of articles 72 to 74 above, with the exception of foreign exchange transactions carried out in accordance with Council regulations.
Art. 77. – The prohibition set out in article 76 above does not apply to the Treasury if the texts which are specific to it authorize it to carry out such operations.
The prohibition also does not apply:
– non-profit organizations which, within the framework of their mission and for social reasons, grant loans from their own resources on preferential terms to some of their members.
– companies that grant advances on salaries or loans of an exceptional nature to their employees for social reasons.
Art. 78. – The Council may, by by-law, grant exemptions to the prohibition provided for in article 76 above in favor of housing organizations which accept deferred payment for housing of which they are promoters. It will set the conditions and limits for such operations.
Art. 79. – Notwithstanding the prohibition enacted in article 76 above, any company may:
– in the exercise of its activity, grant its contractors payment periods or advances;
– carry out treasury transactions with companies having with it, directly or indirectly, capital relations conferring on one of them an effective power of control over the others;
– issue vouchers and cards issued for the purchase from it of a specific good or service.
Art. 80. – Without prejudice to the conditions set by the Board, by regulation, for their supervisory staff, no one may be the founder of a bank or a financial institution or member of its board of directors, nor, directly or through an intermediary, direct, manage or represent in any capacity whatsoever a bank or a financial institution, nor have signing authority for such companies:
– if he has been the subject of a conviction:
- a) for felony,
- b) for embezzlement, embezzlement, theft, fraud, issuance of bad checks or breach of trust;
- c) for subtractions committed by public depositories or by extortion of funds or securities;
- d) for bankruptcy;
- e) for violation of foreign exchange laws and regulations;
- f) for forgery in writing or forgery in private commercial or banking documents;
- g) for breach of company law;
- h) for receiving property held as a result of these offenses;
- i) for any offense related to drug trafficking, money laundering and terrorism.
- If it has been the subject of a conviction pronounced by a foreign jurisdiction and which has become res judicata, constituting, according to Algerian law, a conviction for one of the crimes or offenses mentioned in this article;
If he has been declared bankrupt or if a bankruptcy has been extended to him or if he has been convicted in civil liability as an organ of a bankrupt legal person both in Algeria and abroad and this, as long as he was not rehabilitated.
Art. 81. – It is prohibited for any company other than a bank or a financial institution to use a denomination, a company name, an advertisement or, in general, expressions making believe that it is approved as bank or financial institution.
A financial institution is prohibited from suggesting that it belongs to a category other than that under which it was authorized or from creating confusion on this point.
The representative offices in Algeria of foreign banks or financial institutions may state the name or the corporate name of the company to which they depend, specifying the nature of the activity that they are authorized to exercise in Algeria.
AUTHORIZATION AND APPROVAL
Art. 82. – The constitution of any bank and any financial institution governed by Algerian law must be authorized by the Council, on the basis of a file including, in particular, the results of an investigation relating to compliance with the provisions of article 80 ci -above.
Art. 83. – Banks and financial establishments under Algerian law must be constituted in the form of joint stock companies. The Board appreciates the opportunity for a bank or a financial institution to take the form of a mutuality.
Foreign participations in banks and financial institutions governed by Algerian law may be authorized.
Art. 84. – The opening in Algeria of representative offices of foreign banks must be authorized by the council.
Art. 85. – The opening in Algeria of branches of foreign banks and financial establishments may be authorized by the Council, subject to the principle of reciprocity.
Art. 86. – The Council will determine by regulation made in accordance with article 62 of this ordinance, the terms of the agreements which may be concluded, if it occurs, with the monetary authorities or foreign central banks.
Art. 87. – Decisions taken by the Council by virtue of Articles 82, 84 and 85 above can only be appealed to the Council of State after two refusals, the second request can only be made ten (10) clear months after notification of the refusal on the first request.
Art. 88. – Banks and financial institutions must have fully paid-up capital in cash at least equal to the amount set by a regulation made by the Council in accordance with article 62 above.
Banks and financial institutions whose head office is abroad are required to allocate to their branches in Algeria an endowment at least equal to the minimum capital required, as the case may be, from banks and financial institutions governed by Algerian law.
Banks and financial institutions approved prior to the date of publication of this ordinance have a period of two (2) years to comply with the provisions of this article and the regulations adopted for its application.
Art. 89. – Any bank or any financial institution must justify, at any time, that its assets actually exceed the liabilities which it is owed to third parties by an amount at least equal to the minimum capital referred to in article 88 above. A regulation adopted by the Council will determine the conditions of application of this article.
Art. 90. – The effective determination of the direction of the activity of a bank or a financial institution and the responsibility for its management must be ensured by at least two people.
Banks and financial institutions whose head office is abroad designate at least two people to whom they entrust the effective determination of the activity and the responsibility for the management of their branches in Algeria.
Art. 91. – To obtain the authorization provided for in article 82 or in article 84 above, the applicants submit the activity program, the financial and technical means that they intend to implement as well as the quality of the fund providers.
In any case, the origin of the funds must be justified.
The applicants submit the list of the main directors and, as the case may be, the draft statutes of the Algerian company or those of the foreign company, as well as the internal organization.
Art. 92. – Once the authorization has been obtained in accordance with article 91 above, the company governed by Algerian law may be constituted and request its approval, as the case may be, as a bank or as a financial institution.
The authorization is granted if the company has fulfilled all the conditions set for the bank or the financial institution by this ordinance and the regulations made in application as well as, possibly, the special conditions with which the authorization is attached.
Branches of foreign banks and financial institutions authorized by virtue of article 88 above are authorized after having fulfilled the same conditions.
Approval is granted by decision of the Governor and published in the Official Journal of the People’s Democratic Republic of Algeria.
Art. 93. – The Governor keeps a list of banks and a list of financial institutions up to date.
These lists are published each year in the Official Journal of the People’s Democratic Republic of Algeria.
Any modification is published in the same forms.
Art. 94. – Amendments to the statutes of banks and financial institutions which do not relate to the object, capital or shareholding must be authorized in advance by the Governor.
Any transfer of shares in a bank or a financial institution must be authorized in advance by the Governor under the conditions provided for by a regulation adopted by the Board.
Amendments to the statutes of a bank or foreign financial institution having a branch in Algeria are submitted, to become enforceable in Algeria, to the Council when they relate to the object of the company.
Art. 95. – Without prejudice to the sanctions that may be imposed by the Banking Commission within the framework of its attributions, the withdrawal of the authorization is decided by the Council:
- a) at the request of the bank or financial institution;
- b) automatically:
1 – when the conditions to which the approval is subject are no longer met;
2 – when the authorization has not been used for a period of twelve (12) months;
3 – when the activity, object of the approval, has ceased for six (6) months.
ORGANIZATION OF THE PROFESSION
Art. 96. – The Bank of Algeria creates an association of Algerian bankers to which banks and financial institutions operating in Algeria are required to join.
The purpose of this association is to represent the collective interests of its members, in particular to the public authorities, to inform and raise awareness among its members and the public.
This association studies questions concerning the exercise of the profession, in particular the improvement of banking and credit techniques, the stimulation of competition, the fight against barriers to competition, the introduction of new technologies, the organization and the management of services of common interest, staff training and relations with employee representatives. It can be consulted by the Minister in charge of finance or the Governor of the Bank of Algeria on all questions of interest to the profession. It can propose, within the framework of professional ethics, either to the Governor or to the Banking Commission, sanctions against one or more of its members.
The Currency and Credit Council approves the statutes of the association as well as any modification thereof.
CONTROL OF BANKS AND FINANCIAL ESTABLISHMENTS
LIQUIDITY AND SOLVENCY – RISK CENTER –
PROTECTION OF DEPOSITORS
Art. 97. – Banks and financial institutions are required, under the conditions defined by regulation adopted by the Council, to respect the management standards intended to guarantee their liquidity and their solvency with regard to depositors and third parties as well as the balance of their financial structure.
Failure to comply with the obligations established by virtue of this article results in the application of the procedure provided for in article 114 of this ordinance.
Art. 98. – The Bank of Algeria organizes and manages a risk centralization service, called “central risk”, responsible for collecting from each bank and each financial institution the name of the beneficiaries of loans, the nature and the ceiling of credits granted, the amount of uses as well as the guarantees taken for each credit.
Banks and financial institutions are required to join the credit bureau. They must provide the credit bureau with the information referred to in paragraph 1 st of this article.
The Bank of Algeria communicates to each bank and financial institution, on request, the data collected concerning the company’s customers.
The Council establishes, in accordance with article 62 of this ordinance, the regulations organizing the operation of the credit bureau and its financing by the banks and financial institutions which bear the only direct costs.
The Bank of Algeria organizes a central risk and a central delinquency.
Art. 99. – When the situation of a bank or a financial establishment justifies it, the Governor invites the main shareholders of this bank or establishment to provide him with the support he needs, in financial resources.
The Governor can also organize the support of all banks and financial institutions to take the necessary measures to protect the interests of depositors and third parties, for the proper functioning of the banking system and to preserve the reputation of the market.
STATUTORY AUDITOR, AGREEMENTS
WITH EXECUTIVE OFFICERS
Art. 100. – Each bank or financial institution, as well as any branch of a foreign bank must appoint at least two (2) auditors.
Art. 101. – In addition to their legal obligations, the auditors of banks and financial institutions are required:
1 – to immediately report to the Governor any offense committed by the company they control in accordance with this law and the regulatory texts adopted by virtue of its provisions;
2 – to present to the Governor of the Bank of Algeria a special report concerning the control carried out by them; this report must be submitted to the Governor within four (4) months of the end of each financial year;
3 – to present to the general meeting a special report on any facility granted by the company to one of the natural or legal persons referred to in article 104 of this ordinance. With regard to branches of foreign banks and financial institutions, this report is presented to their representatives in Algeria;
4 – to send to the Governor of the Bank of Algeria a copy of their reports intended for the general assembly of the company.
Art. 102. – The auditors of banks and financial institutions are subject to the control of the banking commission which may apply the following sanctions to them, without prejudice to disciplinary or criminal proceedings:
- – blame;
- – the prohibition to continue the control operations of a bank or a financial institution;
- – the ban on exercising the functions of auditor of banks and financial institutions for a period of three years.
No credit may be granted to auditors directly or indirectly by the bank or financial institution they control.
Art. 103. – Banks and financial institutions are required to draw up their accounts in consolidated form under the conditions set by the Council.
Any bank or financial institution must publish its annual accounts within six (6) months following the end of the financial year in the official bulletin of mandatory legal announcements under the conditions set by the Council. Other publications may be required.
The banking commission has exclusive competence to grant, exceptionally, any useful extension of time, according to the elements presented in support of their request, to banks and financial institutions, within the limit of six (6) months.
Without prejudice to the above provisions, an original of the annual accounts must be communicated by the banks or any financial institution to the banking commission before publication.
The banking commission is empowered to order the institutions concerned to make corrective publications in the event that inaccuracies or omissions have been noted in the published documents.
It can bring to the attention of the public any information it deems useful.
AGREEMENTS WITH MANAGERS
Art. 104. – A bank or a financial institution is prohibited from granting loans to its managers, shareholders or companies in the group of the bank or financial institution.
For the purposes of this article, the directors are the founders, directors, representatives and persons with signing authority.
The spouses and relatives to the first degree of managers and shareholders are assimilated to them.
Art. 105. – A banking commission is hereby established, hereinafter referred to as “commission”, responsible for:
– monitor compliance by banks and financial institutions with the laws and regulations applicable to them;
– sanction any breaches that are observed.
The commission examines the operating conditions of banks and financial institutions and ensures the quality of their financial situation.
It ensures compliance with the rules of good conduct of the profession.
It notes, where applicable, the offenses committed by persons who, without being authorized, carry out the activities of a bank or a financial establishment and applies to them the disciplinary sanctions provided for by this ordinance, without prejudice to other criminal and civil proceedings. .
Art. 106. – The commission is made up of:
– the Governor, President;
– three (3) members chosen for their competence in banking, finance and accounting;
– two (2) magistrates seconded from the Supreme Court, chosen by the first president of this Court after consulting the Superior Council of the Judiciary.
The members of the commission are appointed for a period of five (5) years, by the President of the Republic.
Article 25 of this ordinance applies to the chairman and to the members of the committee.
The commission has a general secretariat whose powers, organizational and operating procedures are set by the Board of Directors of the Bank on the commission’s proposal.
Art. 107. – The decisions of the commission are taken by majority. In the event of a tie, that of the president is decisive.
Only the decisions of the commission in matters of designation of provisional administrator or liquidator and of disciplinary sanctions are susceptible of a judicial appeal.
Under penalty of foreclosure, the appeal must be presented within sixty (60) days of the notification.
The notification of decisions takes place by extrajudicial act or in accordance with the code of civil procedure.
The appeals are the competence of the Council of State. They are not suspensive of execution.
Art. 108. – The commission is empowered to control banks and financial establishments on documents and on the spot.
The Bank of Algeria is responsible for organizing, on behalf of the commission, this control through its agents.
The commission can charge any person of its choice with a mission.
The banking commission hears the minister in charge of finance, at the latter’s request.
Art. 109. – The commission organizes the program of its controls.
It determines the list, the presentation model and the transmission deadlines for the documents and information it deems useful.
It is empowered to ask banks and financial institutions for all information, clarifications and justifications necessary for the exercise of its mission.
It may ask any person concerned to communicate any document and any information.
Professional secrecy is not enforceable against it.
Art. 110. – The commission extends its investigations to the participations and to the financial relations between the legal persons which directly or indirectly control a bank or a financial establishment, as well as to the subsidiaries of the latter.
Within the framework of international conventions, controls can be extended to subsidiaries and branches of Algerian companies established abroad.
The results of on-site inspections may be communicated to the boards of directors of companies incorporated under Algerian law and to representatives in Algeria of branches of foreign companies as well as to auditors.
Art. 111. – When a company subject to its control has breached the rules of good conduct of the profession, the committee, after having enabled the managers of this company to present their explanations, may send them a warning.
Art. 112. – When the situation of a bank or of a financial institution so warrants, the commission may order it to take, within a specified period, all measures likely to restore or strengthen its financial balance or to correct its methods of management.
Art. 113. – The commission can appoint a provisional administrator to whom are transferred all the powers necessary for the administration and management of the company concerned or of its branches in Algeria and who can declare the cessation of payments.
This appointment is made either on the initiative of the managers when they consider that they are no longer able to exercise their functions normally, or on the initiative of the committee when, in its opinion, the management of the company can no longer be insured under normal conditions, or when one of the sanctions referred to in Article 114 below, 4th and 5th paragraphs has been taken.
Art. 114. – If a bank or an establishment has violated a legislative or regulatory provision relating to its activity, has not complied with an injunction or has not taken into account a warning, the commission may pronounce one the following sanctions:
1 – the warning;
2 – blame;
3 – the prohibition to carry out certain operations and all other limitations in the exercise of the activity;
4 – the temporary suspension of one or more of the managers with or without the appointment of a provisional administrator;
5 – the termination of the functions of one or more of these same persons with or without the appointment of a provisional administrator;
6 – withdrawal of approval.
In addition, the commission may pronounce, either instead of or in addition to the aforementioned sanctions, a pecuniary sanction at most, equal to the minimum capital to which the bank or the financial institution is subject. The corresponding amounts are collected by the Treasury.
Art. 115. – Any bank or any financial institution under Algerian law whose approval has been withdrawn enters into liquidation.
Also enters into liquidation the branch in Algeria of a foreign bank or financial institution whose license has been withdrawn.
The commission may put into liquidation and appoint a liquidator to any entity which irregularly carries out the operations reserved for banks and financial establishments or which infringes one of the prohibitions of article 81 of this ordinance.
During the period of its liquidation, the bank or the financial institution:
– can only carry out the operations strictly necessary to resolve the situation;
– must mention that he (she) is in liquidation;
– remains subject to the control of the commission.
Art. 116. – The commission determines the modalities of the provisional administration and the liquidation.
Art. 117. – The following are bound by professional secrecy, under penalty of the penalties provided for by the penal code:
– any member of a board of directors, any auditor and any person who, in any capacity whatsoever, participates or has participated in the management of a bank or a financial institution or who is or has been in the employee;
– any person who participates or has participated in the control of banks and financial institutions under the conditions of this book. Subject to the express provisions of law, secrecy is enforceable against all authorities except:
– to the public authorities for the appointment or appointment of bank administrators and
– to the judicial authority acting within the framework of criminal proceedings;
– the public authorities required to communicate information to the competent international institutions, in particular in the context of the fight against corruption, money laundering and the financing of terrorism;
– to the banking commission or to the Bank of Algeria acting on behalf of the latter in accordance with article 108 above.
The Bank of Algeria and the Banking Commission may transmit information to the authorities responsible for the supervision of banks and financial institutions in other countries, subject to reciprocity and provided that these authorities are themselves subject to professional secrecy with the same guarantees as in Algeria. The liquidator of a bank or a financial institution may also be made the recipient of the information necessary for his activity.
GUARANTEE OF DEPOSITS
Art. 118. – Banks must participate in the financing of a guarantee fund for bank deposits in national currency, created by the Bank of Algeria.
Each bank is required to pay to the guarantee fund an annual guarantee premium of 1% (one per cent) at most of the amount of its deposits.
Each year, the Council fixes the amount of the premium referred to in the previous paragraph. It sets the amount of the maximum guarantee granted to each depositor.
A person’s deposits with the same bank are considered, for the purposes of this article, as a single deposit even if they are in various currencies.
This guarantee can only be brought into play in the event of suspension of payment by the bank.
It does not cover amounts advanced by banks among themselves.
Art. 119. – Minors are allowed to have passbooks opened without the intervention of their legal representative. They can withdraw without this intervention, but only after the age of sixteen, the sums appearing on the books thus opened, unless opposed by their legal representative served in the form of extrajudicial documents.
Art. 120. – Accounts opened with a bank can be individual, collective with or without joint and several or undivided. They can be assigned as collateral for the benefit of the bank by simple deed under private signature.
Art. 121. – To guarantee the payment in capital, interest and costs of all debts owed to banks or financial institutions or which are assigned to them as collateral and of all bills assigned to them or given as collateral, as well as to guarantee the ‘execution of any commitment towards them by surety, endorsement, endorsement or guarantee, the said companies benefit from a privilege on all goods, debts and assets in account.
This privilege ranks immediately after those of employees, the Treasury and social insurance funds and is exercised from:
– of the notification, by registered letter with acknowledgment of receipt, of the seizure to the third party debtor or to the holder of movable property, debts and accounts receivable;
– the date of formal notice given in the same forms in other cases.
Art. 122. – The pledging of debts in favor of banks and financial institutions and the assignment of debts by them or in their favor are perfect by the simple notification that they make to the debtor by registered letter with acknowledgment of receipt or by deed with a certain date of a private deed constituting the pledge or assigning the debt.
Art. 123. – The pledge of business assets in favor of banks and financial institutions can be carried out by private deed duly registered.
The registration of this pledge is made in accordance with the applicable legal provisions.
Art. 124. – In the absence of payment by the due date of sums due to them, banks and financial institutions may, notwithstanding any opposition and 15 days after summons served on the debtor by extrajudicial act, obtain by simple request addressed to the president of the court that be ordered the sale of any pledge made in their favor and the allocation to their profit, without formalities, of the proceeds of this sale, in reimbursement of capital, interest, interest on late payment and costs of the sums due.
The same applies to the exercise by banks and financial institutions of the privileges conferred on them by laws and regulations in force on securities, equipment, furniture or merchandise.
The provisions of this article are also applicable:
– movable property held by the debtor or by third parties on his behalf;
– due receivables held by the debtor against third parties as well as all accounts receivables.
EXCHANGES AND MOVEMENTS OF CAPITAL
Art. 125. – Are considered, within the meaning of this ordinance, as residents in Algeria, the natural and legal persons who have the main center of their economic activities there.
For the purposes of this ordinance, natural and legal persons whose main center of economic activities is located outside Algeria are considered as non-residents.
Art. 126. – Residents in Algeria are authorized to transfer capital abroad to ensure the financing of activities abroad complementary to their activities of production of goods and services in Algeria.
The Council determines the conditions of application of this article and grants the authorizations in accordance with these conditions.
Art. 127. – The Bank of Algeria organizes the foreign exchange market within the framework of the foreign exchange policy adopted by the Council, and in compliance with the international commitments entered into by Algeria.
The dinar exchange rate cannot be multiple.
Art. 128. – A joint Bank of Algeria – Ministry of Finance committee is responsible for overseeing the implementation of the external debt strategy and the asset and external debt management policy. It is composed of two members appointed respectively by the Governor and by the Minister in charge of finance.
Art. 129. – Financial movements with foreign countries must not have the direct or indirect effect of creating in Algeria any situation whatsoever having the character of monopoly, cartel or agreement, and any practice tending to such situations is prohibited.
Art. 130. – Any company of exporting Algerian law, concessionaire of the mining or energy field of the State must obligatorily have and maintain its accounts in foreign currency with the Bank of Algeria and carry out its operations in foreign currency through it.
Art. 131. – The president, directors or general managers of a bank or a financial institution who, in bad faith, have made use of the property or credit of the company which they knew to be contrary to the interests of it, for personal purposes or to promote another company or business in which they were interested, directly or indirectly, will be punished by imprisonment from five (5) to ten (10) years and a fine from five million (5,000,000 DA) dinars to ten million (10,000,000 DA) dinars, without prejudice to the application of more serious penalties.
The president, directors or general managers of a bank or of a financial institution who, in bad faith, have made the powers they possessed or the votes they had, in that capacity, be punished with the same penalties. use which they knew to be contrary to the interests of the company for personal ends or to favor another company or company in which they were interested, directly or indirectly, without prejudice to the application of more serious penalties.
The culprit may, moreover, be struck for at least one (1) year and five (5) years at most of the prohibition of one or more of the rights mentioned in article 14 of the penal code and of the stay ban.
Art. 132. – The president, directors or general managers of a bank or a financial institution who misappropriate, dissipate or subtract, to the detriment of the owners, possessors or holders of effects, money, notes or any other writings containing or operating obligation or discharge which were only given to them as a deposit, pledge or loan are punishable by imprisonment from one (1) year to ten (10) years and a fine of five million dinars (5,000 .000 DA) to ten million dinars ((10,000,000 DA).
The offender may, moreover, be struck for at least one year and at most five years with the prohibition of one or more of the rights mentioned in article 14 of the penal code and with the ban on residence.
Art. 133. – In the cases provided for in articles 131 and 132 above and when the value of the misappropriated, dissipated or withdrawn property is equal to or greater than ten million dinars, the penalty incurred will be life imprisonment and a fine of twenty million. from dinars (20,000,000 DA) to fifty million dinars (50,000,000 DA).
Art. 134. – Any person who, acting either on his own behalf or on behalf of a legal person, has contravened one of the provisions of articles 76, 80 and 81 of this ordinance is liable to penalties for fraud.
The court may, in addition, order the closure of the business where an infringement of article 76 or article 81 of this ordinance has been committed.
He may also order that the judgment be published in full or in extracts in the newspapers he designates and that it be posted in the places he determines, at the expense of the convicted person, without these exceeding the maximum amount of the fine incurred.
Art. 135. – Anyone who has been convicted under article 134 above for breach of article 80 above of this ordinance may not exercise, for any reason whatsoever, in a bank, in a financial institution or in any subsidiary of said banks or financial institutions.
In the event of violation of this prohibition, the offender and his employer will be punished with the penalties of fraud.
Art. 136. – Any director, any manager of a bank or financial institution, any person in the service of such a company, any auditor of this company who, after formal notice, does not respond to requests for information from the banking commission, which obstructs, in any way whatsoever, the exercise by it of its control mission or which knowingly communicates inaccurate information to it, is punished by imprisonment of one (1) year to three (3) years and a fine of five million dinars (5,000,000 DA) to ten million dinars (10,000,000 DA).
Art. 137. – The administrators shall be punished from one (1) year to three (3) years imprisonment and a fine of five million dinars (5,000,000 DA) to ten million dinars (10,000,000 DA). and bank or financial institution managers as well as people working for these companies who:
– will have knowingly obstructed the verifications or controls of the statutory auditors or, after summons, will have refused the communication of all the documents useful for the exercise of their mission, in particular all contracts, books, accounting documents and minute registers ;
– have not drawn up the inventory, drawn up the annual accounts within the time limits provided for by law;
– have not published the annual accounts under the conditions provided for in article 103 of this ordinance;
– will have knowingly communicated false information to the Bank of Algeria.
Art. 138. – Customers of banks and financial institutions who commit or help to commit one of the acts punished by articles 133 and 134 above will be punished by the penalties provided for by these articles.
Art. 139. – Any violation of the provisions of BOOK VI above and the regulations made for their application will be punished by imprisonment of one (1) month to six (6) months and a fine of up to 20% of the value of the investment.
Art. 140. – The Governor may act as a civil party in his capacity in any procedure.
In any case, the court may ask the banking commission for any advice and useful information.
Art. 141. – The regulations made within the framework of the law n ° 90-10 of April 14, 1990, modified and supplemented, referred to above, remain in force until their replacement by regulations made in application of this ordinance.
Art. 142. – All contrary provisions are repealed, in particular the aforementioned law n ° 90-10 of April 14, 1990, amended and supplemented.
Art. 143. – This ordinance will be published in the Official Journal of the People’s Democratic Republic of Algeria.