Western Sahara Country Summary

The Western Sahara is a disputed territory claimed by Morocco. As such, we are including the information for Morocco below:

FATF Status

Morocco is no longer on the FATF List of Countries that have been identified as having strategic AML deficiencies.

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.

Western Sahara, as a disputed territory claimed by Morocco, reflects the broader challenges of crime and corruption prevalent in Morocco itself. Corruption is seen as a systemic issue, with significant public perception of its prevalence in state institutions, while organized crime, including human trafficking and drug smuggling, poses ongoing threats to security and governance in the region.

Western Sahara's economy is heavily reliant on fishing, which employs a significant portion of the workforce, while mining, agriculture, and tourism play minor roles due to environmental limitations. The region's economic activities are predominantly controlled by the Moroccan government, which enforces a state-dominated economy characterized by heavy subsidies and price controls to encourage population growth. However, the investment climate is hindered by the territory's disputed status, raising legal and ethical concerns over resource exploitation that deter international companies and complicate adherence to international trade agreements.