The Know Your Customer (KYC) process is becoming a central tool in the insurance sector in Algeria, aimed at preventing fraud and money laundering, experts and professionals say.
The KYC process is used to verify the identity of customers, as well as assess their financial situation, their risk profile and the origin of their funds. It uses specialised databases, information systems, and artificial intelligence, while complying with personal data protection legislation.
KYC is now a required procedure for insurance companies, reports the Algerian Press Service.
The president of the Algerian Union of Insurance and Reinsurance Companies (UAR), Mr Youcef Benmicia, said that the insurance sector adopted, towards the end of 2024, a regulation establishing the KYC process, emphasising that this procedure is carried out in compliance with the law on the protection of personal data.
The Insurance Supervisory Commission published the regulation in November 2024 which imposes enhanced customer due diligence measures on insurers.
The regulation provides for the adoption of clear customer acceptance or refusal policies, as part of the fight to prevent and combat money laundering, the financing of terrorism and the financing of the proliferation of weapons of mass destruction.
According to Mr Benmicia, this decree requires companies to establish a risk map and adapt their control mechanisms based on identified threats.