Morocco Fails to Meet Global Standards on Money Laundering Regulations
Morocco, a country located in North Africa’s Maghreb region, has been identified as a country with ineffective anti-money laundering (AML) compliance by the Financial Action Task Force (FATF). The country’s lack of comprehensive AML legislation and inadequate regulations have raised concerns about its ability to combat money laundering and terrorist financing.
Ineffective AML/CFT Regime
According to FATF, Morocco’s AML/Combating the Financing of Terrorism (CFT) regime is ineffective, posing a threat to the European economy. In response, the Moroccan government has committed to improving its AML/CFT regime in collaboration with FATF and other international organizations.
UTRF: The Authorized Body for Implementing AML/CFT Regulations
The Financial Intelligence Processing Unit (UTRF) is the authorized body responsible for implementing AML/CFT regulations in Morocco. Established in 2009, UTRF joined the Egmont Group of FIUs in 2011 and is tasked with protecting the country’s economy against money laundering and terrorist financing.
Action Plan to Address Deficiencies
In a recent report, UTRF identified several areas requiring improvement, including:
- Strengthening its system
- Collaboration with international and local authorities
- Regular controls
- Reporting
The report also included an action plan to address these deficiencies and improve Morocco’s AML/CFT regime according to international standards.
High-Risk Sectors
Morocco’s economy is heavily reliant on trade with European countries, making it a prime target for money launderers. The country’s high-risk sectors, including:
- Informal transactions
- Drug trafficking
also pose significant vulnerabilities.
Measures to Address Concerns
To address these concerns, the Moroccan government has agreed to implement several measures, including:
- Risk-based approach at the state level
- Establishment of a disincentive AML regulatory system
- Enforcement of legal obligations on non-compliant institutions
- Determining clear beneficial ownership information
- Implementing a diversified transaction reporting system
Challenges Remain
Despite these efforts, Morocco remains classified as a Country/Jurisdiction of Primary Concern by the US State Department, with an overall risk score in Basel Index 2022 higher than the average at 5.32.
Solution for Moroccan Organizations
Sanction Scanner offers advanced AI-driven AML solutions for Moroccan organizations, enabling them to comply with AML requirements successfully and protect financial integrity. With Sanction Scanner, Moroccan entities can stay ahead of AML compliance and mitigate the risks associated with money laundering. Contact us today to learn more about our AML solutions for Morocco.