Financial Crime World

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Financial Crime Statistics in Morocco: A Growing Concern

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Morocco, a country located in North Africa’s Maghreb region, has been identified as a high-risk jurisdiction for money laundering and terrorist financing. With its strategic location and historical ties to Europe, particularly France, the country has become an attractive destination for financial criminals.

Economic Profile

  • Population: 37.34 million (2021 World Bank data)
  • Fifth-largest economy in Africa
  • Main imports:
    • Energy
    • Food
    • Significant trade relationships with Spain, France, Germany, the US, and China
  • Exports mainly directed towards:
    • Spain
    • France
    • Italy
    • India

AML Compliance Issues

In February 2022, the Financial Action Task Force (FATF) identified Morocco as a country with ineffective Anti-Money Laundering (AML) compliance in high-risk third-country jurisdictions. As a result, the Moroccan government was required to collaborate with FATF and ensure all institutions within the country adhere to its regulations.

Authorized Body for AML/CFT

  • Financial Intelligence Processing Unit (UTRF)
  • Established in 2009
  • Joined the global Egmont Group of FIUs in 2011
  • Works to strengthen its AML framework according to international standards

Report on AML/CTF Condition

In March 2021, UTRF published a report outlining the examination of Morocco’s AML/CTF condition and the country’s efforts to combat these crimes. The report included an action plan aimed at strengthening the system, collaborating with international and local authorities, and implementing regular controls.

Overview of Morocco’s AML Situation

  • Lack of comprehensive AML legislation is a notable issue in Morocco
  • Both private and public sectors are affected
  • Classified as a Country/Jurisdiction of Primary Concern by the US State Department
  • Overall risk score: 5.32 (Basel Index 2022)

Vulnerabilities for Financial Crimes

  • International trafficking
  • Informal sectors
  • High-volume transactions
  • Proximity to Europe makes it a significant source of money laundering, particularly through drug trafficking between Morocco and Europe

Commitment to Strengthen AML System

Morocco has agreed with FATF and MENAFATF to strengthen its anti-money laundering system and collaborate with them to implement it effectively. To meet international standards, the country has committed to several steps, including:

  • Implementing a risk-based approach at the state level
  • Establishing a disincentive AML regulatory system
  • Enforcing legal obligations on non-compliant institutions
  • Determining clear beneficial ownership information

AML Solutions for Morocco

To combat money laundering and protect its financial integrity, Moroccan organizations require strict compliance measures. Sanction Scanner offers advanced AI-driven AML solutions to help Moroccan entities comply with AML requirements successfully.