Anti-Money Laundering (AML) in Morocco

While Morocco is not regarded as a regional financial center, money laundering remains a major concern due to narcotics, human trafficking and a large level of remittances from Moroccans living abroad. In 2007, the amount of money transferred to the country from Moroccans living abroad increased by 15 percent over the level in 2006, and totaled more than $7 billion – approximately nine percent of Gross Domestic Product (GDP). While the true extent of the money laundering problem in the country is unknown, the conditions necessary for it to occur are still present.

In 2007, the Kingdom of Morocco passed a comprehensive Anti-Money Laundering (AML) bill and a planned establishment for a Financial Intelligence Unit (FIU). In early 2009, the Financial Data Processing Unit (UTRF) was created to fight money laundering, in accordance to the 2007 legislation. The new unit is responsible for processing and spreading financial data in order to guarantee coordination among administrations, public institutions and legal entities. It is also responsible for assessing AML measures and proposing new procedures to eliminate money laundering in Morocco.

AML Training in Morocco

The Kingdom of Morocco, together with the Middle East and North Africa Financial Action Task Force (MENAFATF) and the Financial Action Task Force (FATF), is currently in the process of creating a sufficient AML framework program. This framework will provide Morocco with its necessary training requirements to ensure that all financial institutions in the country are prepared to prevent and protect against money laundering.

The Economy of Morocco

Morocco's economy is a relatively liberal economy that is governed by the law of supply and demand. Since 1993, the country has followed a policy of privatization of certain economic sectors which was once held responsible by the government. The World Economic Forum placed Morocco as the second most competitive economy in North Africa in its 2009 African Competitiveness Report, behind Tunisia. Additionally, Morocco was ranked the 1st African country by the Economist Intelligence Unit' quality-of-life index, ahead of South Africa. Economic growth is far more diversified, with new service and industrial areas developing, such as in Casablanca and Tangier. The agriculture sector is currently being rehabilitated, which in combination with good rainfalls has led to a growth of over 20% in 2009.

Banking in Morocco

The Bank Al-Maghrib is the central bank of the Kingdom of Morocco. Established in 1959, it holds the country’s reserves of currency, the dirham, with an estimated worth of $36 billion. In addition to managing the dirham, the Bank Al-Maghrib also supervises a number of private banks throughout the country.

Morocco's Currency

The currency in Morocco is the dirham. The dirham comes in both banknotes and coins. Banknotes are available in 20, 50, 100 and 200 denominations. The current coins are available in 05, 1, 2, 5 and 10 dirham and 5, 10 and 20 santimat, which is a division of the dirham.

Other Key Statistics about Morocco

Time Zone: UTC+1 (5 hours ahead of Washington, DC during Standard Time).

Daylight savings time: Morocco does not currently observe daylight savings time.

Location: Northern Africa, bordering the North Atlantic Ocean and the Mediterranean Sea, between Algeria and Western Sahara.

Population: 31,627,428 (July 2010 est.).

Labor Force: Approximately 44.6% works in agriculture, 19.8% in industry and 35.5% in services industries. The unemployment rate is 9.1%.

Languages Spoken: Arabic (official), Berber dialects, with French most often used in business, government and diplomacy.

Trade Organizations: Morocco is a member of the World Trade Organization (WTO).