Financial Crime World

Morocco’s Banking Landscape: Regulations and Trends

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Morocco’s banking sector is governed by a complex set of regulations and laws. This article provides an overview of the key regulations and trends shaping the industry, from data protection to financial crime and competition.

Data Protection

In Morocco, personal data protection is governed by:

  • Law 09-08
  • Law 132-13
  • Decree 2-09-165

Credit institutions are required to:

  • Guarantee customers’ right to access and rectify their personal data
  • Implement technical and organizational measures
  • Ensure the lawfulness of data processing

Cybersecurity

Morocco’s cybersecurity regime is primarily governed by:

  • Law 05-20
  • Decree 2-15-712
  • Bank-Al-Maghrib Directive 3-W-16

Credit institutions are obligated to:

  • Assess the security of their information systems
  • Conduct regular tests
  • Undertake risk mapping to prevent hacking and cyberattacks

Financial Crime

Morocco’s provisions on money laundering are primarily set out in:

  • Royal Decree 1-07-79
  • Bank-al-Maghrib circulars

Credit institutions are subject to obligations such as:

  • Vigilance
  • Internal monitoring
  • Reporting suspicious transactions

Banking secrecy applies in Morocco, governed by Law 103-12, which requires individuals with access to credit institution information to maintain professional secrecy.

Competition

The Moroccan banking sector is characterized by moderate concentration, with competition increasing between credit institutions. The Competition Council may conduct studies on anti-competitive practices and economic concentration operations, while Bank Al-Maghrib (BAM) can:

  • Postpone licence applications or merger requests if they consider them anti-competitive
  • Appoint a provisional administrator to propose options such as liquidation, transfer, or demerger

Bank Failure

In the event of bank failure, BAM can appoint a provisional administrator to propose options such as:

  • Liquidation
  • Transfer
  • Demerger

The insolvency and liquidation regime applies to banks in Morocco, with BAM issuing injunctions to remedy solvency issues.

COVID-19 Impact

Despite increased credit costs due to the pandemic, Moroccan credit institutions remain resilient in terms of solvency and liquidity. BAM will continue to transpose Basel Committee rules, and legislative reforms are expected to reflect new players in the banking and para-banking markets.

Cryptocurrencies and Fintech

Morocco does not currently regulate cryptocurrencies, and there have been no legislative developments with respect to fintech. However, a 2017 press release warned the public against the use of virtual currencies.

The full report provides an in-depth analysis of Morocco’s banking landscape, trends, and predictions for the next 12 months.