Morocco’s Financial Crimes: A Hidden Menace - From Human Trafficking to Cyberthreats and Tax Evasion
People
Morocco, known for its rich culture and breathtaking landscapes, is also a critical hotspot for various financial crimes. This North African country serves as a source, destination, and transit point for heinous activities, including human trafficking.
- Human Trafficking: Morocco is grappling with the alarming issue of human trafficking. Thousands of irregular migrants, mostly Moroccan nationals, are arrested each year attempting to leave the country for Europe. The socio-economic challenges in African countries during the COVID-19 pandemic have led to an increase in human smuggling. Vulnerable groups, including female migrants from sub-Saharan Africa and South Asia, are at higher risk. Reports of foreign nationals participating in child sex tourism in major Moroccan cities are a worrying trend.
Trade
Morocco’s efforts to maintain law and order and strict gun regulations have resulted in a reduction of arms trafficking. However, illegal firearms manufacturing for drug trafficking purposes has been reported. Morocco’s weak law enforcement, low taxes, and lenient customs controls, especially in free zones, make it a lucrative market for the illicit trade of counterfeit goods. Despite attempts to curb this illicit activity, resource constraints remain a significant challenge.
- Illicit Trade in Excisable Goods: Morocco serves as a source or transit point for billions of illicit cigarettes and smuggled e-cigarettes, en route to Europe. Worries about the health implications have also emerged. Alcohol consumption in Morocco is higher compared to other countries in the region, making it a primary driver for illicit trade.
Environment
Environmental crimes in Morocco are relatively low volume, but the illegal logging of the Atlas Cedar is a significant instance. The absence of animal welfare laws enforcement means there are few deterrents. Elegant goldfinches and barbary macaques are among the species being illegally traded, heading primarily to Europe. Some wildlife remains in the country, exploited in the tourism industry as photo props or for shows. The illegal trafficking of non-renewable resources, such as eels and endangered species, is also a concern.
Drugs
Morocco is faced with significant drug-related issues. Though heroin trade poses a significant problem in Morocco’s northern regions, most of the heroin comes from Europe and is exchanged for cannabis resin in the Rif. Morocco is a crucial trans-shipment point for cocaine bound for European markets, with a limited but growing local market for this drug.
- Cannabis Production: Morocco is the world’s leading cannabis producer, with the Rif region being the primary center of production. While there is significant local consumption, Moroccan cannabis is also exported to international markets, including European and African regions. The authorities are reluctant to dismantle the cannabis trade due to its role as a primary income source for many.
Cyber Crimes
Cyber threats have emerged as a daily concern in Morocco as digital infrastructure becomes increasingly crucial. In 2021, authorities thwarted hundreds of cyber intrusion attempts targeting government ministries and public institutions. Though these attacks caused no significant damage or losses, concerns persist due to increasing reliance on digital infrastructure and the sophistication of cyberattacks.
Financial Crimes
Financial crimes continue to undermine efforts to expand Morocco’s tax base. Incidents of real estate fraud, misappropriation of public funds in the security and health sectors, tax evasion, and fraud schemes perpetrated by multinational companies have resulted in hundreds of millions of dirhams in losses. Banks have reported cases of client deposit embezzlement and various fraudulent activities related to cheques, cards, account opening, and payment reversals. Hacking of automated data systems, servers, networks, and cyber-enabled breaches of customer accounts have also been identified, resulting in unauthorized transactions.