The various financial services in Morocco are on high alert in anticipation of the audit to be conducted by the Financial Action Task Force (FATF) for the Middle East and North Africa. This mission is part of the third round of mutual evaluation of Morocco's national anti-money laundering framework, according to the daily newspaper Al Akhbar in its weekend edition of Saturday and Sunday, December 13 and 14.
A delegation visited Morocco at the end of November and held a meeting with the head of government, Aziz Akhannouch, in the presence of several ministers and officials from relevant national institutions. The objective was to officially launch the third round of assessments, which is expected to continue until the review and adoption of the final report, scheduled for May 2028.
During this meeting, the Moroccan government reaffirmed its commitment to the Financial Action Task Force's international standards and emphasized the strategic importance of this third assessment. The authorities also highlighted the effectiveness of the national framework, the level of coordination among the relevant institutions, and the legislative, regulatory, and institutional reforms undertaken in recent years.
Among the key issues to be addressed is the correction of loopholes in the Moroccan financial system that allow the use of cryptocurrencies in illicit money laundering operations, according to Al Akhbar. Bank Al-Maghrib had already warned against their use in Morocco, considering it an illegal and risky activity due to the lack of consumer protection, vulnerabilities in exchange platforms, and the risks of theft, fraud, and high volatility in their value. These assets can also be used for illicit purposes, particularly money laundering or terrorist financing, while circumventing existing regulations.
According to the FATF Mutual Evaluation Report, Morocco has not identified the risks associated with new financial products at the national level. Furthermore, legislation does not require the insurance, capital markets, or foreign exchange sectors to assess the risks associated with innovative products or business practices. Financial institutions are also not required to assess these risks before launching new services or adopting new technologies.
The report notes, however, that Morocco has addressed some shortcomings identified in the third enhanced monitoring report, notably by adopting in 2021 the second version of the national risk assessment, which was disseminated to all relevant bodies. This assessment analyzes the risks associated with new technologies, cybercrime, and virtual assets, but does not include those related to the activities of virtual asset service providers, the report states.
Financial entities must now identify and assess the risks associated with the development of new products or business practices, including innovative distribution instruments and emerging technologies.
The report notes, however, that this second national assessment still fails to consider the risks that may arise from financial innovation, whether related to new products, new business practices, or virtual asset service providers. It also highlights that, despite increased oversight of virtual asset transactions, no significant sanctions have been imposed on offenders. The assessment group did not obtain a legal basis establishing a direct ban on virtual assets, apart from circulars and announcements intended to alert the public and financial institutions.
In terms of international cooperation, the report notes efforts in the exchange of information, although these do not yet include virtual assets or their providers.
The Exchange Office, for its part, published a notice indicating that some individuals and legal entities are using cryptocurrencies or declaring their acceptance of them. The Office reiterates that these transactions violate exchange regulations and expose those responsible to penalties. It also warns of the high risks associated with these currencies, which are not issued by official authorities and whose holders often remain anonymous. The Office affirms that it is working in coordination with Bank Al-Maghrib and the Professional Group of Banks of Morocco to monitor developments related to crypto-assets.
