Financial Crime World

MOROCCO’S FINANCIAL CRIME STATISTICS REVEAL SOARING RATES OF MONEY LAUNDERING AND CORRUPTION

Rabat, Morocco - According to a recent report by Transparency International, Morocco has been ranked 94th out of 180 countries globally in terms of perceived corruption. The country’s judicial system, police, public services, land administration, tax administration, customs administration, and public procurement are particularly vulnerable to systematic corruption.

The Prevalence of Corruption in Morocco

  • The report highlights the widespread use of “wasta” - the use of connections - which leads to contracts being awarded to favored individuals in a non-transparent manner.
  • The 2022 European Parliament corruption scandal, which involved EU officials taking bribes from Moroccan officials, is a recent example of international political corruption implicating Morocco.

Money Laundering: A Major Concern for Morocco

Morocco is a significant transit and destination country for the laundering of proceeds by European organized criminal groups. The country’s large informal economy and predominance of the hawala system in the Moroccan market further heighten the risk of money laundering.

Other Financial Crime Risks in Morocco

  • Bribery & Corruption: High levels of bribery and corruption are prevalent in Morocco, particularly in the judicial system, police, public services, land administration, tax administration, customs administration, and public procurement.
  • Human Trafficking: Morocco is exposed to multiple forms of human trafficking, including sex trafficking, labor trafficking, and unspecified forms of trafficking.
  • Drugs & Weapons Trafficking: Small and light weapons have proliferated among terrorist cells in Morocco as well as the Western Saharan independence movement Polisario. Morocco is also a notable source country for hashish and cannabis, which is farmed primarily in the Rif region and trafficked into Europe through Spain.
  • Environmental Crime: Fauna crimes taking place in Morocco include the poaching and trafficking of exotic birds and barbary macaques, and illegal fishing for sale in local or international markets.

Recommendations for Action

To mitigate these financial crime risks, the Moroccan government should:

  1. Strengthen its anti-money laundering laws and regulations to prevent money laundering vulnerabilities.
  2. Enhance transparency and accountability in public procurement processes to reduce corruption.
  3. Increase efforts to combat human trafficking and protect victims.
  4. Improve border control measures to prevent the smuggling of weapons, drugs, and other illicit goods.
  5. Implement effective measures to prevent environmental crimes, such as poaching and wildlife trafficking.

By addressing these financial crime risks, Morocco can reduce its vulnerability to corruption and money laundering, improve its economic stability, and promote a safer and more secure environment for its citizens and international partners.