TESS: Country Report Summary – Morocco

Country Report Summary

Morocco

Anti Money Laundering

FATF status

Morocco is no longer on the FATF List of Countries that have been identified as having strategic AML deficiencies.

Latest FATF Statement - 24 February 2023

The FATF welcomes Morocco’s significant progress in improving its AML/CFT regime. Morocco strengthened the effectiveness of its AML/CFT regime to meet the commitments in its action plan regarding the strategic deficiencies that the FATF identified in February 2021 related to improving its international cooperation mechanisms, strengthening AML/CFT supervision, strengthening transparency of legal persons by ensuring timely access to accurate beneficial ownership information, strengthening the capacities of the FIU, enhancing capacities to conduct ML investigation and confiscate the proceeds of crime and improving effectiveness of the targeted financial sanctions regime. Morocco is therefore no longer subject to the FATF’s increased monitoring process.

Morocco should continue to work with MENAFATF to sustain its improvements in its AML/CFT system.

Compliance with FATF Recommendations

The last follow-up Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Morocco was undertaken in 2020. According to that Evaluation, Morocco was deemed Compliant for 4 and Largely Compliant for 21 of the FATF 40 Recommendations. It was also deemed Highly Effective for 0 and Substantially Effective for 1 with regard to the 11 areas of Effectiveness of its AML/CFT Regime.

Sanctions

There are no international sanctions currently in force against this country.

Bribery & Corruption

Rating: 0 (bad) - 100 (good)

Transparency International Corruption Index = 37

World Bank: Control of Corruption Percentile Rank = 33

Morocco ranks 94th out of 180 countries in Transparency International’s 2023 Corruption Perceptions Index, with widespread corruption perceived as a significant issue across various government branches. Despite the existence of laws and institutions aimed at combating corruption, such as the National Authority for Probity, Prevention, and Fighting Corruption, enforcement remains weak, and many citizens believe the government is ineffective in addressing the problem. Reports indicate that a substantial portion of the population has experienced or witnessed corrupt practices, highlighting the challenges faced by businesses and the need for more robust anti-corruption measures.

Economy

Morocco is strategically positioned at the crossroads of Europe, Sub-Saharan Africa, and the Middle East, aiming to become a regional business and industrial hub by leveraging its political stability and infrastructure. The country attracted the fifth-most foreign direct investment in Africa in 2022, with key sectors including manufacturing, real estate, and telecommunications, although challenges such as bureaucratic inefficiencies and corruption persist. The government continues to implement reforms and incentives to boost foreign investment, particularly in renewable energy and strategic industries.

Morocco’s investment climate is characterized by a strong commitment to attracting foreign investment, particularly in key sectors such as manufacturing, renewable energy, and automotive industries. The government has implemented a new Investment Charter that significantly expands incentives for foreign investors, aiming to increase private investment’s share to two-thirds of total investment by 2035. Despite challenges such as bureaucratic inefficiencies and corruption, Morocco’s strategic location and robust infrastructure position it as a gateway to Africa, enhancing its appeal for international businesses.