Financial Crime World

Morocco Struggles to Contain Financial Crimes, Finds FATF Evaluation

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A recent evaluation by the Financial Action Task Force (FATF) has highlighted Morocco’s struggles in implementing effective measures to combat financial crimes. The evaluation assesses countries’ compliance with international anti-money laundering and counter-terrorist financing standards, finding that Morocco is partially compliant or non-compliant with several key recommendations.

Areas for Improvement

The report identified several areas where Morocco needs to improve its efforts:

  • Assessing risk and applying a risk-based approach
  • National cooperation and coordination
  • Money laundering offenses
  • Confiscation and provisional measures
  • Terrorist financing offenses
  • Targeted financial sanctions related to terrorism and terrorist financing
  • Targeted financial sanctions related to proliferation

Regulation and Supervision Deficiencies

Morocco also fell short in implementing effective regulations and supervision of:

  • Financial institutions
  • Designated non-financial businesses and professions (DNFBPs)
  • Transparency and beneficial ownership of legal persons

Additionally, the country’s law enforcement and investigative authorities lack sufficient powers to combat financial crimes effectively.

Progress Made, But More Needs to be Done

The report noted that Morocco has made some progress in recent years, but more needs to be done to address the shortcomings identified. The country is required to implement necessary reforms to meet international standards set by the FATF.

Consequences of Inaction

Financial experts warn that the lack of effective measures to combat financial crimes can have serious consequences for:

  • The stability and integrity of Morocco’s financial system
  • Attracting foreign investment, essential for economic growth and development

Conclusion

While Morocco has made some progress in implementing anti-money laundering and counter-terrorist financing measures, there are still significant areas where improvement is needed. The country must take concrete steps to address these shortcomings and ensure that its financial system is robust and secure.