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Compliance Training for Banks in Morocco

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In Morocco, local importers do not require an authorization from the Foreign Exchange Office (Office des Changes) to pay for imports of goods and services. However, payment processing is governed by regulations that ensure compliance with international norms.

Regulations and Guidelines

According to Article VIII of the International Monetary Fund statute, authorized Moroccan banks have been delegated the power to freely carry out settlements related to imports, exports, and other current transactions. The Foreign Exchange Office website provides detailed guidelines on foreign exchange operations, which are essential for businesses operating in Morocco.

Prepayment and Letters of Credit

One key aspect of payment processing is prepayment, which is allowed up to 30 percent of the invoice amount for all goods, with a limit of 50 percent for companies in specific sectors such as aeronautics and space. Letters of credit must include a special clause stipulating that payment is subject to justification of direct and exclusive shipment of goods to Morocco exceeding an import value of MAD 200,000 (approximately $21,000).

Banking System

The Moroccan banking system has undergone significant modernization in recent years, with several homegrown financial institutions expanding their international footprint. The sector has a competitive landscape, with locally owned banks accounting for 82.3 percent of industry assets.

Central Bank and Interest Rate Control

The Central Bank (Bank Al Maghrib) uses indirect methods to control the interest rate and volume of credit, ensuring that credit is allocated freely. The banking services penetration rate is approximately 78 percent, providing opportunities for firms operating in rural and less affluent segments of the market.

Compliance Training

To ensure compliance with foreign exchange regulations, businesses must register in Morocco and open an account with a licensed financial institution. The Casablanca Stock Exchange (CSE) has become Africa’s second-largest stock market, with a market capitalization of $72 billion, attracting international investors.

Foreign Exchange Controls

Morocco maintains a system of foreign exchange controls managed by the Foreign Exchange Office, which ensures that the Moroccan dirham trades within a 5 percent band of a reference rate. Banks and financial institutions are authorized to carry out transactions upon presentation of appropriate documentation, such as an invoice to pay for imports.

Correspondent Banks

For U.S. banks operating in Morocco, there are several local correspondent banks to choose from, including:

  • Banque Marocaine du Commerce Extérieur (BMCE)
  • Banque Centrale Populaire (BCP)
  • Attijariwafa Bank
  • Others

Additionally, several U.S. banks have Moroccan branches, such as Citibank Maghreb (Citigroup).

Conclusion

In light of these regulations and requirements, compliance training for banks in Morocco is essential to ensure that businesses operating in the country are aware of the necessary procedures and guidelines to maintain compliance with foreign exchange regulations.