Morocco Makes Strides in Anti-Money Laundering Fight, But Challenges Remain
Morocco is steadily improving its efforts to combat money laundering, according to the Basel Institute on Governance’s 2024 Anti-Money Laundering Index. Ranking 95th out of 164 countries, with a risk score of 4.94 (lower than the global average of 5.45), the Kingdom demonstrates tangible progress in tackling this complex financial crime. This positive trajectory contrasts with some other nations grappling with higher risks, where higher scores indicate greater vulnerability to money laundering and terrorist financing. But while the progress is commendable, challenges persist, particularly in bridging the gap between regulatory compliance and practical enforcement.
This improved ranking reflects Morocco’s commitment to aligning with the Financial Action Task Force (FATF) recommendations, the global standard-setter for anti-money laundering measures. The country has made significant strides in strengthening its legal and regulatory framework, a crucial step in deterring illicit financial flows. For example, recent amendments to Law 43-05 on the fight against money laundering and terrorist financing have broadened the scope of predicate offenses and strengthened customer due diligence requirements for financial institutions. These efforts demonstrate a proactive approach to meeting international standards and safeguarding the integrity of the Moroccan financial system.
However, the Basel Institute’s report highlights a critical challenge: the disparity between theoretical compliance and practical implementation. While Morocco’s regulatory framework is becoming more robust, the effectiveness of enforcement remains a key area for improvement. This echoes a global trend, with the report indicating that the global average effectiveness of implementation measures stands at a mere 28%. This underscores the need for stronger international collaboration and capacity building to ensure that regulations translate into tangible results on the ground. This gap is not unique to Morocco; many countries struggle to effectively implement AML regulations due to factors like limited resources, corruption, and the constantly evolving tactics of criminals.
Boosting financial transparency and tackling corruption are identified as crucial next steps for Morocco. While progress has been made in developing the regulatory framework, enhancing transparency, particularly regarding the beneficial ownership of companies, remains a priority. Knowing who ultimately controls companies is essential to prevent their misuse for illicit purposes. Initiatives like establishing a centralized register of beneficial ownership, as recommended by the FATF, can significantly enhance transparency and aid in investigations of financial crimes. Furthermore, strengthening the capacity of law enforcement and judicial authorities to investigate and prosecute complex money laundering cases is vital. This includes providing specialized training, improving inter-agency coordination, and fostering international cooperation in sharing information and best practices.
The fight against money laundering is a continuous process, requiring ongoing adaptation and vigilance. Morocco’s progress is encouraging, but sustained efforts are needed to ensure that the country’s financial system remains resilient to illicit activities. By addressing the remaining challenges, particularly in strengthening enforcement and enhancing transparency, Morocco can further solidify its commitment to combating financial crime and contribute to a more secure and stable global financial system. Resources like the FATF website and the Basel Institute on Governance offer valuable insights and tools for countries striving to enhance their AML/CFT frameworks.
