MOROCCO EMBARKS ON RISK-BASED APPROACH TO COMBAT MONEY LAUNDERING AND TERRORIST FINANCING

The Financial Action Task Force (FATF) has been at the forefront of developing a risk-based approach to combating money laundering and terrorist financing. This approach was first introduced in June 2007, and since then, the FATF has continued to refine its guidelines to ensure that financial institutions and public authorities are equipped with the necessary tools to effectively identify and mitigate risks.

Risk-Based Approach

In October 2014, the FATF adopted a risk-based approach specifically tailored for the banking sector. The guidance outlines high-level principles for applying the risk-based approach, as well as good practices for designing and implementing an effective anti-money laundering (AML) regime.

Purpose

The purpose of this guidance is to provide a common understanding of what a risk-based approach entails, outline key elements and principles, and highlight best practices in its implementation. The document is primarily addressed to public authorities and financial institutions, but many of the principles can be applied to designated non-financial businesses and professions as well.

Structure

The guidance is structured into three interdependent sections:

• Section One: Sets out the key elements of a risk-based approach
• Sections Two and Three: Provide specific guidance for public authorities and financial institutions respectively
• Annex 1: Contains additional sources of information that can aid in the application of the risk-based approach

MOROCCO’S APPROACH

Morocco has taken steps to implement this risk-based approach, recognizing that each country’s unique risks requires a tailored regime. The guidance does not provide a one-size-fits-all solution but rather offers a framework based on high-level principles and procedures that countries can adapt to their individual circumstances.

Implementing the Approach

The Moroccan authorities, in partnership with financial institutions, will need to identify the most appropriate regime to address the specific risks facing the country. This approach is designed to ensure that anti-money laundering and counter-terrorist financing efforts are effective and proportionate to the risk posed.

Conclusion

In conclusion, Morocco’s adoption of a risk-based approach to combat money laundering and terrorist financing demonstrates its commitment to preventing illicit activities and protecting the integrity of its financial system. The guidance provides a valuable framework for public authorities and financial institutions to work together in identifying and mitigating risks, ultimately contributing to a safer and more stable global financial environment.