Financial Crime World

Morocco Takes Steps to Enhance Anti-Money Laundering and Counter-Terrorist Financing Measures

Strengthening AML and CFT Regime

According to the latest assessment by MENAFATF, Morocco has made significant strides in strengthening its anti-money laundering (AML) and counter-terrorist financing (CFT) measures.

Key Areas of Progress

  • National Risk Assessment: Morocco initiated a National Risk Assessment (NRA) process in 2016, bringing together all stakeholders to collectively consider money laundering (ML) and TF risks.
  • Understanding of Terrorist Financing Risks: Moroccan authorities have a good understanding of terrorist financing (TF) risks.

Areas for Improvement

  • Comprehensive Understanding of ML Risks: Morocco lacks a comprehensive understanding of ML risks, particularly in terms of non-profit organizations (NPOs) and their potential misuse in financing terrorism.
  • Coordination among National Authorities: The need for UTRF to lead efforts to combat ML/CFT policies is hindered by a deficiency in the legal text that only enables it to coordinate on ML, not TF.
  • Limited Use of Financial Intelligence: Morocco has limited use of financial intelligence and ML investigations and prosecutions.

Challenges

  • Insufficient Expertise in ML Operations: Investigative authorities do not have sufficient knowledge of ML cases, including money self-laundering, third-party laundering, and the possibility to prosecute ML as a standalone offense.
  • Low Number of TF Cases Disseminated: There is no feedback at two levels - between UTRF and reporting entities, and between UTRF and the Public Prosecution.

Progress in Confiscation

  • 27 Convictions and 14 Fines Imposed: Morocco has made progress in confiscating criminal assets since 2008.
  • Need for Improved Use of Confiscated Assets: More needs to be done to ensure that confiscated assets are effectively used to disrupt criminal networks.

Recommendations and Next Steps

  • Strengthen Coordination among National Authorities
  • Improve Financial Intelligence Analysis
  • Enhance Investigative Expertise
  • Increase Convictions and Confiscations

Morocco has committed to implementing these recommendations and continues to work towards enhancing its AML/CFT regime to prevent the misuse of its financial system for criminal purposes.