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 2024. According to that Evaluation, Morocco was deemed Compliant for 5 and Largely Compliant for 34 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.

Morocco ranks 94th out of 180 countries in Transparency International's 2023 Corruption Perceptions Index, indicating a significant corruption issue within the country. Despite having laws against corruption, the government struggles with effective enforcement, leading to widespread public perception of corruption in state institutions, as 72% of citizens reported its prevalence. Efforts to combat corruption, such as the establishment of the National Authority for Probity, Prevention, and Fighting Corruption, and the implementation of transparency measures, have been insufficient, with many public officials failing to comply with financial disclosure requirements.

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 actively promotes foreign investment, particularly in manufacturing and export sectors, through favorable macroeconomic policies and incentives, although challenges such as bureaucratic inefficiencies and corruption persist. In 2022, Morocco ranked fifth in Africa for foreign direct investment, with key sectors attracting significant capital, including manufacturing, real estate, and telecommunications.

Morocco's investment climate is characterized by a strong government commitment to attracting foreign investment, particularly in key sectors such as manufacturing, renewable energy, and automotive. The adoption of a new Investment Charter in December 2022 has expanded incentives for foreign investors, while Morocco's strategic location and infrastructure further enhance its appeal as a regional business hub. Despite challenges such as bureaucratic inefficiencies and corruption, Morocco remains an attractive destination for foreign direct investment, ranking fifth in Africa for FDI in 2022.