Financial Crime World

Morocco’s Anti-Money Laundering and Counter-Terrorist Financing Efforts Face Challenges

Rabat - Despite significant progress in combating money laundering (ML) and terrorist financing (TF), Morocco’s efforts face challenges in coordinating policies and activities among various authorities. A recent report by the Moroccan government highlights the need for strengthening strategic analysis, coordination, and capacity building to effectively combat ML and TF.

The Role of the Unit for the Prevention and Fight against Money Laundering and Financing of Terrorism

The Unit for the Prevention and Fight against Money Laundering and Financing of Terrorism (UTRF) plays a crucial role in coordinating anti-ML and anti-TF efforts. Its board includes 13 members representing nine competent authorities, including the Ministry of Finance, Ministry of Justice, and Bank Al-Maghrib.

Challenges Faced by the UTRF

Despite its key role in collecting and analyzing financial intelligence, the UTRF faces challenges in leading the efforts of competent authorities due to a lack of legal clarity on its coordination powers. Specifically:

  • The UTRF is unable to coordinate policies on TF, which hinders national coordination and cooperation.
  • The report notes that the UTRF relies heavily on governmental and non-governmental sources for information, which can lead to gaps in intelligence gathering.

Systemic Risk Supervision and Coordination Committee

The Systemic Risk Supervision and Coordination Committee, chaired by the governor of Bank Al-Maghrib, aims to promote coordination in macro-preventive supervision of the financial sector. However, this committee:

  • Does not have sufficient powers to coordinate policies on ML and TF.
  • Relies heavily on information from governmental and non-governmental sources.

Challenges in Financial Investigation

The report highlights several challenges in financial investigation, including:

  • Investigators lack expertise in ML operations, financial investigation techniques, and technical means and tools.
  • Investigative authorities do not have sufficient knowledge of types of ML cases, including money self-laundering and third-party laundering.

Government Efforts to Address Challenges

The Moroccan government has taken steps to address these challenges, including:

  • Establishing an office for combating economic and financial criminality within the National Security Justice Police (NSJP).
  • Strengthening strategic analysis and coordination among competent authorities.
  • Enhancing the capacities of reporting entities and investigative authorities.

Recommendations

Improve Feedback Mechanism

The report recommends strengthening feedback mechanisms between UTRF and reporting entities to improve the quality of reports submitted. This would enable more effective dissemination of TF cases.

Conclusion

While Morocco has made significant progress in combating ML and TF, there are still significant challenges that need to be addressed to ensure effective coordination and cooperation among various authorities. The Moroccan government must take steps to strengthen strategic analysis, coordinate policies and activities, and enhance the capacities of reporting entities and investigative authorities to effectively combat money laundering and terrorist financing.