Bank regulator flags suspicious transfers afer voluntary tax settlement

Significant and frequent withdrawals from accounts linked to the recently concluded voluntary tax settlement for individuals have triggered an internal investigation at a major banking group in Morocco.

Hespress AR well-informed sources revealed that the bank’s internal control and risk departments are questioning branch officials about the timing and size of these withdrawals.

The accounts were opened as part of a voluntary tax regularization program in Morocco, which officially ended on December 31, 2024—an initiative allowed individuals to declare previously undeclared income and assets, generating over MAD 6 billion from declared assets totaling MAD 127 billion.

By the end of December, this amount was equivalent to 9% of the country’s gross domestic product (GDP). The program is estimated to have brought one-third of the 330 billion dirham informal economy into the formal sector.

Hespress AR sources indicate that a probe is now underway following concerns that some bank employees, in collaboration with accountants, may have facilitated the laundering of significant sums, potentially billions of dirhams, through this settlement process.

Sources revealed that the bank’s risk management system flagged data showing that two bankers had helped clients withdraw large sums and shift their accounts from suburban branches to central city locations, mainly in Casablanca.

This was after warning them not to misuse the funds they had declared under the tax program run by the General Directorate of Taxes.

The bankers told clients that even though their data was confidential, it wouldn’t protect them from future tax audits if the money was spent carelessly. They then referred the clients to accountants specializing in setting up companies and managing tax filings.

The sources emphasized that these individuals began dividing the withdrawn amounts from personal accounts into accounts belonging to limited liability companies (SARLs) specifically created to legitimize fictitious commercial transactions, supported by invoices and bank statements.

They also noted that accountants were expanding the business activities of these shell companies to allow more room for fake transactions, inflated invoices, and the injection of undeclared funds into the banking system, under the cover of the voluntary tax settlement program.

In one case, a real estate client who had deposited MAD 7.5 million under the settlement was advised by a suburban branch manager to form a company and open a new account at a different branch, aiming to avoid suspicion over future withdrawals.

Authorities are now expected to launch follow-up tax audits targeting individuals who benefited from the voluntary settlement. Under Article 219 of the General Tax Code, while the program shielded participants from penalties for prior noncompliance, it does not exempt them from audits covering the years 2021 to 2024.

Only the 5% contribution paid on declared assets and expenses will be excluded from the tax base during reassessments. Their total annual income will also be assessed as part of the comprehensive tax situation review process for this category of taxpayers, as detailed in Article 216 of the General Tax Code.

The same sources told Hespress that the protections offered by the voluntary tax settlement apply only to the amounts that were actually declared—leaving undeclared funds exposed to future audits.

This has sparked concern among bank clients, some of whom have reportedly tried to move large sums of cash into the banking system through savings products linked to education, retirement, and healthcare.

Experts have previously warned that certain savings products may be vulnerable to money laundering due to their flexibility and ease of use.

Omar Ismaili, a credit and financial risk management specialist, previously told Hespress AR that the recent surge in savings activity could attract illicit actors. “Savings accounts are attractive to money launderers because they require minimal documentation on fund origins,” Ismaili said.