Morocco’s Struggle Against Money Laundering: Anti-Money Laundering Laws Fall Short

Introduction

Morocco, a country in North Africa’s Maghreb region, has been identified as a hub for money laundering and terrorist financing. Despite efforts to combat these threats, Morocco still faces significant challenges in implementing effective anti-money laundering (AML) laws.

A Hub for Money Laundering

According to the Financial Action Task Force (FATF), Morocco was listed as a country with ineffective AML compliance in high-risk third-country jurisdictions in February 2022. The country’s economy is heavily reliant on trade with the European Union, making it an attractive destination for financial criminals looking to launder money.

Main import goods: energy and food
Main exportation destinations: Spain, France, Italy, and India

Challenges in Combating Money Laundering

The Financial Intelligence Processing Unit (UTRF) is responsible for implementing AML/Counter-Terrorism Financing (CFT) regulations in Morocco. However, despite efforts to combat money laundering, the country still faces significant challenges.

Lack of comprehensive AML legislation
Gaps in fighting money laundering according to international standards

Rating and Risks

Morocco’s risk score is higher than the average at 5.32, placing it in the 6th rank among jurisdictions in the MENA region (average score is 5.03). Critical areas of vulnerability include:

International trafficking
Informal sectors
High-volume transactions

Commitment to Strengthening Anti-Money Laundering System

Morocco has agreed to strengthen its anti-money laundering system and collaborate with FATF and MENAFATF to implement it effectively. To meet FATF’s standards, Morocco has committed to:

Implementing a risk-based approach at the state level
Establishing a disincentive AML regulatory system
Enforcing legal obligations on non-compliant institutions

Solution for Moroccan Organizations

Sanction Scanner offers advanced AI-driven AML solutions for Moroccan organizations, enabling them to comply with AML requirements successfully. With Sanction Scanner’s solution, Moroccan entities can keep up with AML compliance and protect financial integrity.