Morocco’s Anti-Money Laundering and Counter-Terrorist Financing Measures Under Scrutiny

The Kingdom of Morocco has made significant strides in combating money laundering (ML) and counter-terrorist financing (CFT), but concerns remain over the lack of coordination among various authorities and institutions.

Challenges Facing the Moroccan Financial Intelligence Unit (UTRF)

The UTRF, established to coordinate AML/CFT policies, has 13 members representing nine competent authorities. However, despite its key role in collecting and analyzing financial intelligence, UTRF faces challenges in leading efforts to combat ML and TF due to legal deficiencies and limited coordination with other authorities.

Systemic Risk Supervision and Coordination Committee

The Systemic Risk Supervision and Coordination Committee, chaired by the governor of Bank Al-Maghrib (BAM), aims to promote coordination in macro-preventive supervision of the financial sector, including combating ML and TF. This committee is critical in ensuring the stability of Morocco’s financial system.

Key Role of UTRF

As the main authority responsible for coordinating AML/CFT policies, UTRF plays a crucial role in collecting, analyzing, and disseminating financial intelligence. It receives Suspicious Transaction Reports (STRs) and other reports deemed useful for its work. However:

• There is no feedback mechanism between UTRF and reporting entities, hindering the quality of reports submitted.
• The lack of coordination with other authorities limits the effectiveness of UTRF’s efforts.

Investigations and Prosecutions

Morocco’s National School of Judiciary Police (NSJP) has created an office to combat economic and financial criminality, responsible for investigating ML offenses and implementing decisions related to ML investigations. However:

• Investigators lack expertise in ML operations, financial investigation techniques, and technical means and tools.
• The investigative authorities face challenges in identifying crimes associated with ML and tracing illicit funds due to limited knowledge of ML cases.

Confiscation

Morocco has made efforts to confiscate criminal assets, but the number of cases remains low. Despite eight judgments related to ML generated from drug trafficking between 2008 and 2016, only two convictions were secured, with the rest resulting in acquittals.

Conclusion

The Moroccan government acknowledges these challenges and is working to address them through legislative reforms, increased coordination among authorities, and enhanced investigative capabilities. As a result, Morocco remains committed to combating ML and TF, ensuring the stability of its financial system, and protecting its citizens from financial crimes.