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 2022. According to that Evaluation, Morocco was deemed Compliant for 5 and Largely Compliant for 29 of the FATF 40 Recommendations. It remains 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 significant corruption issues within the government and public institutions. Despite laws against corruption, enforcement is weak, with many citizens perceiving an increase in corrupt practices and a lack of effective governmental response. The National Authority for Probity, Prevention, and Fighting Corruption (INPLCC) has been established to combat these issues, but challenges remain, including insufficient penalties for non-compliance and a lack of protections for NGOs investigating corruption.

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 export sectors like manufacturing. The country has seen a slight decrease in foreign direct investment (FDI), with key industries such as manufacturing, real estate, and telecommunications receiving the most investment. The Moroccan government has implemented various incentives and reforms to enhance its investment climate, including a new Investment Charter adopted in December 2022.

Morocco's investment climate is characterized by a strong emphasis on 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 to two-thirds of total investment by 2035. Despite challenges such as bureaucratic inefficiencies and corruption, Morocco continues to position itself as a regional business hub, leveraging its strategic location and infrastructure.