Financial Crime World

Title: Morocco’s Compliance Landscape: Navigating Corporate Responsibility, Data Privacy, Anti-Corruption, Anti-Money Laundering, and Competition Regulations Amidst COVID-19

Overview

Amidst the ongoing COVID-19 pandemic, compliance in Morocco’s finance sector has become increasingly crucial, with regulators paying close attention to economic actors’ adherence to key regulations. here are five primary areas of focus:

1. Corporate Social Responsibility (CSR)

  • Heightened obligations: Companies face increased obligations to ensure general hygiene, safety, and employee health.
  • Workplace regulations: Businesses with over 50 employees must establish Hygiene and Safety Committees to assess risks, ensure adherence to safety laws, and oversee medical services.

2. Data Privacy

  • Remote work and digital commerce: The shift to remote work and digital commerce has raised concerns over data privacy.
  • Organizational and technical measures: Companies must address regulations regarding access control, encryption, and legal formalities for processing personal data.
  • CNDP declarations and customer consent: For online sales, businesses must comply with Morocco’s Law no. 09-08 and make necessary declarations, and obtain customer consent.

3. Preventing Corruption

  • Risk of noncompliance: The economic fallout of the pandemic has increased the risk of noncompliance with anti-bribery and anti-corruption regulations.
  • Strict enforcement by Moroccan authorities: Companies must establish in-house standards and procedures to minimize risk and mitigate circumstances in case of corrupt practices.
  • Foreign regulations: Businesses operating in Morocco need to be aware of international regulations such as the US Foreign Corruption Practices Act and the UK Bribery Act.

4. Preventing Money Laundering

  • Reporting suspicious transactions: Morocco’s Law no. 43-05 requires businesses to report suspicious transactions and maintain internal monitoring systems.
  • FATF recommendations: Morocco’s commitment to meeting Financial Action Task Force (FATF) recommendations makes it crucial for businesses to maintain a strong stance against money laundering to avoid legal repercussions.

5. Complying with Competition Regulations

  • Merger activity and competition behavior: Increased competition and merger activity necessitate strict adherence to competition regulations.
  • Merger notification obligations: The Competition Council is responsible for enforcing competition regulations and fines companies heavily for noncompliance.
  • Penalties for noncompliance: Failure to comply may result in significant financial penalties.

Contact

For further information on these key areas of compliance in Morocco’s finance sector, please contact the authors.