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 having laws against corruption, enforcement is weak, leading to widespread public perception of corruption in government institutions, with 72% of citizens believing it is prevalent. The government has established the National Authority for Probity, Prevention, and Fighting Corruption to address these issues, but many officials fail to comply with transparency requirements, and the lack of conflict of interest legislation further complicates the situation.

Western Sahara's economy is largely dependent on fishing, which employs two-thirds of the workforce, while mining, agriculture, and tourism play a minor role. The region has some phosphate reserves, but food is primarily imported from Morocco, and the economy is heavily influenced by its disputed status, with Morocco controlling most economic activities.

The investment climate in Western Sahara is significantly affected by its political status, with Morocco controlling most economic activities, which creates legal and ethical dilemmas for international companies. Although there has been exploration for natural resources like oil and gas, many firms have withdrawn due to pressures related to international law and local interests, complicating the investment landscape further.