New Regulations Enhance Financial Oversight
In a significant move aimed at bolstering financial transparency and fortifying Morocco’s economy, the Foreign Exchange Office has announced the publication of Circular No. 2026/2. This circular outlines the vigilance and internal monitoring obligations imposed on offshore holding companies, aligning with the provisions of Law No. 43-05, which pertains to the fight against money laundering, as well as Law No. 58-90 regarding free trade zones. The primary goal of this circular is to establish a comprehensive monitoring system tailored to the scale and nature of the companies involved, particularly focusing on identifying clients and actual beneficiaries, while also verifying the sources of funds.
A source from the Foreign Exchange Office, in a brief statement to Hespress, described this initiative as a legal advancement designed to close gaps in the regulatory framework concerning money laundering for this category of companies. The source confirmed that the circular has been in effect since its signing by the Minister of Economy and Finance, Nadia Fettah, on July 23, 2026. This development falls under the supervisory and regulatory functions of the Foreign Exchange Office concerning offshore holding companies.
Implementation of a Risk-Based Approach
The circular adopts a risk-based approach, mandating these companies to establish an internal vigilance and monitoring system that includes stringent measures for identifying clients and actual beneficiaries. This entails a thorough verification of the sources and destination of funds, regular updates of client information, and enhanced vigilance towards politically exposed persons or connections to high-risk countries. Furthermore, the document requires the creation of a precise “information card” for each client before initiating any business relationship or executing any urgent transactions.
The term “actual beneficiary” is defined within the document as any individual who directly or indirectly holds 25% or more of the capital or voting rights, or who exercises actual control over the management bodies. Additionally, companies are required to verify the identities of their managers and actual beneficiaries from independent and reliable sources. The circular emphasizes the necessity of immediately refraining from establishing or continuing any business relationship if the client's identity cannot be verified, coupled with a requirement for immediate reporting to the National Financial Information Authority.
Moreover, the circular delineates the obligations related to tracking and monitoring transactions, placing special emphasis on unusual, complex, or high-risk transactions that do not appear to have an economic justification or legitimate purpose. Notably, the document stipulates the mandatory appointment of a compliance officer within each offshore holding company to oversee the implementation of the vigilance system and to ensure adherence to the established regulations, including the scrutiny of complex transactions and ongoing coordination with relevant national authorities. In terms of reporting, the circular mandates the immediate declaration of any suspicious activity to the National Financial Information Authority concerning any amounts or transactions suspected of being linked to money laundering or terrorist financing.
To facilitate the financial authorities in their oversight functions, the document imposes a requirement for these companies to retain all documentation related to transactions and clients for a period of ten years, beginning from the date of the transaction or the conclusion of the business relationship. Through this circular, the Foreign Exchange Office enhances the regulation of offshore holding companies, reaffirming its commitment to establishing effective oversight proportional to the risks involved, thereby contributing to improved compliance, transparency, and security of these companies' activities within the Moroccan financial system. It is noteworthy that the office, affiliated with the Ministry of Economy and Finance, has framed these new provisions within its supervisory and regulatory responsibilities concerning offshore holding companies.
As reported by hespress.com.
