Morocco tackles money laundering and financial crime

As part of the fight against terrorism, Morocco has begun tackling money laundering and other financial crime by approving a new law early this month to curb the phenomenon.

Zouheir Chorfi, Director of the Treasury and External Finance, told Magharebia that money laundering has a negative impact on the country’s economy and is threatening its stability by enabling organised financial crime to take root. He explained that Morocco’s full range of financial services combined with lax oversight has made the country a favourite location for criminals seeking to stockpile money earned through fraud.

The King’s Public Prosecutor at the Supreme Court, Moulay Taib Cherkaoui, says that Morocco must now protect itself on an international level to avoid becoming a haven for international mafias seeking opportunities to settle in the country. The northern region's cannabis trade and illegal immigration make it a hotspot for laundered money.

Abdelhamid Awad, chairman of the Group for Unity and Equality, welcomed the adoption of the new law, saying it will help stop people from illegally amassing large amounts of money.

Deputy Habib Choubani, chairman of the Group for Justice and Development in parliament, shared this view and said that the law is a matter of great importance. He added that the new law is vital to the fight against terrorism: "Terrorist groups must be tackled. We need to close the net on the terrorist and drug networks."

Deputy Bouchra El Khyari also hailed the law: "This is a first for Morocco, which has lagged well behind other countries in this area. Sixteen other Arab states already have laws against money laundering."

Cherkaoui explained to magharebia that the law against money laundering forbids the use of the financial system for illegal purposes and the transfer of funds gained illegally through business or other financial activities. He said that the crackdown on money laundering will involve a number of institutions, including lending institutions, banks and offshore holding companies, finance companies, insurance and reinsurance companies, auditors, external accountants and tax consultants.

A new unit attached to the prime minister’s office with wide-ranging powers will be put in charge of investigating money laundering gangs, tracking down people and organisations suspected of the crime and exposing the cover-ups they use to disguise their activities. It will set up a database on money laundering operations, be responsible for ordering investigations and inspections, and will also monitor the financial activities of criminals and gangs.

The law provides for prison sentences and large fines. Individuals convicted under the new law will face two to five years in prison, and a fine of 20,000-100,000 dirhams. Corporations knowingly participating in financial crimes will face fines of 500,000 to 3 million dirhams, in addition to penalties which could be imposed on their bosses and other agents involved. The law will double prison sentences and fines for repeat offences or in cases where crimes have been committed on a habitual basis by an organised group.

http://www.magharebia.com/cocoon/awi/xhtml1/en_GB/features/awi/features/2007/03/29/feature-02