Welcome to another edition of our Weekly Risk Watch where we provide a clear-eyed view of the economic indicators, political currents, and security developments that could impact your business or daily life, all wrapped up in a convenient weekly package.
Economy and Markets
- Investors in Morocco are frustrated by slow bureaucratic processes and a lack of digitalization at regional investment centers, a risk to slowing the investment climate in Morocco.
- Morocco’s tax authority is preparing to withhold value-added tax at source (RAS) starting July 1st, 2024, adding regulatory burden on the tax office amid reports of overwhelming requests for tax settlement certificates.
- The Banking Control Departments of Bank al Maghreb said they will launch surprise inspections to verify banks’ display of free and paid service price lists, which could potentially risk market perception and regulatory intervention.
- Moroccan tax authorities are using new techniques to detect tax evasion, comparing declared income to a person’s standard of living to identify discrepancies, with the risk of infringing on taxpayer privacy.
- Moroccan Exchange Office warned banks about money laundering using forged exchange licenses for overseas investments, prompting stricter verification procedures to prevent future smuggling.
- Cash use in Morocco rose to 403.2 billion dirhams, said Morocco’s Central Bank, as it seeks solutions to promote digital payments and curb risks of inflation and economic instability.
- Moroccan anti-corruption authorities are investigating alleged embezzlement and forgery within the Ministry of Health related to deals made during the COVID-19 pandemic, with over 80 companies and 20 billion dirhams in question.-
Political Stability
- Health worker unions in Tetouan protested Tuesday government inaction on their financial demands outlined in a previous agreement with the Ministry of Health, in a risk to labor unrest.
- Professors at the Faculty of Sciences in Tetouan protested Wednesday to demand better university funding, facility maintenance, and streamlined financial procedures, in a risk to labor unrest.
- Mass methanol poisoning in Sidi Allal Tazi, near Kenitra from tainted alcohol has caused 15 deaths (8 in hospital, 7 outside), with 87 infected.
- Casablanca-Settat commune leaders received instructions from the Interior Ministry to enforce construction permit regulations to prevent irregularities in the issuance of housing permits and certificates, adding to state burden.
- The Progress and Socialism Party, currently in opposition, has accused the government of “seeking hegemony” and “abolishing the principle of participatory approach in managing public affairs,” highlighting the risks of government inaction.
- Minister of Justice Abdelatif Ouahbi said Morocco needs to create 4,500 positions to meet court staffing needs, which would increase the state burden.
Cross-border
- French and Spanish farmers blocked border crossings with Morocco on Monday morning to pressure the EU for cheaper energy and equal environmental standards, causing disruptions to Moroccan exports and risking trade disputes.
- Belgium faced uproar over racism as a lawmaker of Moroccan origin was urged to leave the country during a TV debate.
- A Moroccan YouTuber, Adam Taoufiq, has disappeared for over 11 days, reportedly in the “Golden Triangle” where Moroccans are detained in Myanmar.
- Moroccan Foreign Minister Nasser Bourita condemned Israel for a provocative “flag march” in Jerusalem’s Al-Aqsa Mosque, urging Israeli authorities to halt such actions to prevent further conflict.
Security
- Moroccan police seized Monday 18.243 tons of cannabis and arrested five suspects in a joint operation near Casablanca, thwarting an international drug trafficking attempt.
- Police in Ait Melloul, Morocco arrested a 51-year-old woman for impersonating a dentist, practicing without a license at her home clinic, in a risk to public health.
- Moroccan counter-terrorism forces arrested four ISIS loyalists in Salé, Tangier, and Tetouan for plotting terrorist attacks against critical infrastructure in Morocco.
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