The Western Sahara is a disputed territory claimed by Morocco. Information for Morocco may be included below:

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.

Morocco faces significant challenges with corruption, ranking 94th out of 180 countries in Transparency International's 2023 Corruption Perceptions Index. Despite laws aimed at combating corruption, enforcement is weak, and a majority of citizens perceive corruption as prevalent in state institutions. The government has established bodies like the National Authority for Probity, Prevention, and Fighting Corruption to address these issues, but reports indicate that corruption remains a persistent problem across various sectors, hampering development and deterring investment.

Western Sahara's economy is predominantly driven by fishing, which employs two-thirds of the workforce, while mining, agriculture, and tourism play minor roles. The territory has abundant fishing resources and phosphate reserves, although the latter is relatively insignificant compared to Morocco's overall phosphate production. Most food for urban residents is imported from Morocco, and the economy is heavily influenced by Moroccan government control and subsidies.

The investment climate in Western Sahara is complicated by its disputed status, which creates ambiguity in the application of international trade agreements. While Morocco aims to attract investment, potential investors face significant challenges due to the legal and ethical implications of investing in a non-self-governing territory.