Morocco Country Summary

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.

Morocco continues to grapple with significant challenges related to crime and corruption, with persistent government corruption undermining public trust and prompting investigations into numerous cases involving officials. Despite the establishment of various anti-corruption initiatives and legal frameworks aimed at enhancing transparency and accountability, the effectiveness of these measures is hampered by systemic issues and a lack of enforcement, particularly at lower levels of government.

In terms of criminal activities, Morocco serves as a critical hub for human trafficking, drug production, and illicit trade, with organized crime networks often linked to political and administrative circles. While the government has made strides in combating these issues through international cooperation and the establishment of special investigative units, the resilience of these criminal networks and the challenges of implementing effective governance continue to pose significant obstacles to achieving lasting reform.

Morocco is strategically positioned at the crossroads of Europe, Sub-Saharan Africa, and the Middle East, aiming to establish itself as a regional business and industrial hub. The government actively promotes foreign investment through favorable macroeconomic policies, trade liberalization, and structural reforms, particularly in key sectors such as renewable energy, automotive, and pharmaceuticals. Despite a significant drop in foreign direct investment in 2023, recent trends show a rebound in 2024, driven by investments from countries like France, although challenges such as bureaucratic inefficiencies and corruption remain pertinent issues for potential investors.