Morocco Country Summary

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 faces significant challenges with corruption, ranking 94th out of 180 countries in Transparency International's 2023 Corruption Perceptions Index, and is perceived by citizens as a prevalent issue within state institutions. Despite the establishment of the National Authority for Probity, Prevention, and Fighting Corruption (INPLCC) and recent legal frameworks aimed at combating corruption, enforcement remains weak, with many public officials failing to comply with financial disclosure requirements. Additionally, Morocco grapples with organized crime, including drug trafficking and human smuggling, while efforts to improve governance and transparency are hindered by systemic corruption and political interests.

Morocco aims to become a regional business and industrial hub by leveraging its strategic location, political stability, and infrastructure to attract foreign investment, particularly in manufacturing and export sectors. The country has seen a slight decrease in foreign direct investment (FDI) in 2022, but it remains a significant player in Africa, ranking fifth in FDI attraction. Key industries identified by the government include renewables, automotive, aeronautics, textiles, and pharmaceuticals, supported by a new Investment Charter that enhances incentives for foreign investors.

Morocco's investment climate is characterized by its strategic location, political stability, and robust infrastructure, which the government leverages to attract foreign investment, particularly in manufacturing and export sectors. The updated Investment Charter adopted in December 2022 enhances 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 remains a significant destination for foreign direct investment in Africa, ranking fifth in 2022.