Morocco Takes Steps to Enhance Anti-Money Laundering and Counter-Terrorist Financing Measures
Progress Made in Strengthening AML/CFT Regime
According to a recent assessment by MENAFATF2019, the Kingdom of Morocco has made significant progress in strengthening its anti-money laundering (AML) and counter-terrorist financing (CFT) measures. The assessment highlights several key areas where Morocco has improved its AML/CFT regime.
Establishment of National Risk Assessment Process
One of the notable improvements is the establishment of a National Risk Assessment (NRA) process, which was initiated in 2016. The NRA helped to collectively consider ML/TF risks and engage all stakeholders, providing relevant information to the national committee entrusted with following up on the NRA’s work.
Areas Requiring Improvement
However, the assessment also identified several areas that require improvement. One key issue is the need to enhance the resources and capabilities available to UTRF (Unité de Traitement et de Référence des Finances), which plays a crucial role in collecting, analyzing, and disseminating financial intelligence.
Limited Understanding of Money Laundering Risks
The assessment also noted that Morocco has limited understanding of money laundering risks, despite having a good understanding of terrorist financing risks. The NRA report found that the country’s authorities lack analysis on how terrorist entities misuse non-profit organizations (NPOs).
Recommendations for Improvement
To address these gaps, the Moroccan authorities need to:
- Update their NRA approach and content to consider sectors that attract criminal proceeds
- Identify the nature of threats posed by terrorist entities to NPOs and analyze how they misuse these organizations
- Enhance the resources and capabilities available to UTRF
- Improve investigators’ expertise in ML operations, financial investigation techniques, and predicate offenses investigations
- Enhance knowledge of the types of ML cases, including money self-laundering and third-party laundering
Coordination among National Authorities
The assessment also highlighted the importance of coordination among national authorities, including the Systemic Risk Supervision and Coordination Committee, which is chaired by the governor of BAM (Bank Al-Maghrib) and established under article 108 of the law concerning credit institutions and similar bodies.
Investigation and Prosecution of Money Laundering Offenses
The Moroccan authorities have also made progress in investigating and prosecuting money laundering offenses. The NSJP (National Security Joint Force) has created an office for combating economic and financial criminality, which is mandated to investigate ML offenses and implement the decisions of the Royal Prosecutor.
Conclusion
Despite these challenges, Morocco has made efforts to improve its AML/CFT regime, and the assessment recognized that the country’s anti-money laundering law is generally in line with international standards. However, more needs to be done to ensure that Morocco’s AML/CFT measures are effective in preventing money laundering and terrorist financing.
By implementing these recommendations, Morocco can strengthen its AML/CFT regime and reduce the risk of money laundering and terrorist financing.