FATF puts Morocco on the Grey List for Pervasive Money laundering

  • Richard Marley
  • March 01, 2021
  • 2 minutes read
  • 157

Financial Action Task Force, the global regulatory watchdog for money laundering, has placed Morocco on the grey list for being a part of pervasive money laundering and terrorism financing. The country has now been put in a similar category to Yemen, Syria, and Pakistan.

This designation by FATF is a serious blow to foreign investments in the country. Morocco was recently removed from the EU’s grey list and within a week it was placed on the FATF’s grey list. The EU removed Morocco from its grey list as an acknowledgement of its efforts to comply with the international tax standards. 

The grey list of FATF entails countries that are considered to be problematic by the regulatory organization. Morocco has failed to comply with the FATF’s recommendations of AML/CFT which resulted in being designated in the grey list.

This news of Morocco’s designation is not a surprise as the politicians of the country are known to have prolonged measures that are intended to prevent corruption and money in the country.

The FATF president said, “Among other things, Morocco must strengthen its financial intelligence unit, one of the core authorities in the fight against money laundering.

The Minister of Justice insisted on, “the urgency of passing a new law, which concerns the creation of a national financial intelligence institution as well as the establishment of a legal mechanism for the application of sanctions decreed by the United Nations Security Council in matters of financial crimes, money laundering and terrorist financing.

Transparency International has also recommended Morocco to strengthen measures that will take down illicit enrichment. They must also hold public officials accountable for indulging in such practices. However, the Moroccan parliament members have refuted that such measures can be misused by the political opponents in discrediting the politician by accusing parliamentarian members of fraud and corruption.