Algerian gendarmerie dismantles network siphoning $4 million through car import fraud

The National Gendarmerie in Algeria has dismantled a criminal organization that used new vehicle imports as a front to launder millions of dollars, uncovering a sophisticated capital flight mechanism. This operation follows public denouncements by President Tebboune regarding such practices. The network operated by deliberately undervaluing export invoices, declaring less than what was actually received, and retaining the difference abroad instead of repatriating it to Algeria as required by law. This resulted in a loss of nearly $4 million in export revenues for the country. To recycle these funds, the network used new car imports from abroad, a sector with sufficient financial volume to integrate illicit flows into seemingly legitimate transactions. The investigation, conducted by specialists in economic and financial crime, led to the arrest of 15 suspects, with 4 individuals still at large. Authorities also seized 5 vehicles and 5 industrial machines. The timing of this operation is significant, as President Abdelmadjid Tebboune had recently addressed these practices, specifically targeting exporters who intentionally undervalue goods to divert foreign currency from official channels. The President had also stated that Algeria, having curbed import over-invoicing, would address export under-invoicing with similar resolve to protect the national economy. The dismantling of this network represents an initial operational response to this commitment.