Morocco audits overseas investments amid tightened financial oversight

Morocco’s Exchange Office has launched an audit of Moroccan investments abroad, focusing on financial transactions in African countries, as part of its efforts to ensure compliance with foreign exchange regulations.

The initial phase of the audit is targeting sectors including construction, public works, food industries, textiles, clothing, and pharmaceutical distribution. The Exchange Office’s Risk Monitoring and Analysis Department is coordinating the effort with the Customs Administration and General Tax Directorate, sources said.

Inspectors are examining declarations and financial transfers from Moroccan companies that established branches abroad within the past three years. Using data from the Tax Directorate and bank account reviews, the auditors aim to verify whether investment returns have been repatriated to Morocco as required by law. Exchange regulations prohibit depositing investment income into foreign accounts.

Auditors have also requested information from banks operating in African countries to track significant transfers involving specific companies. Licenses granted by the Exchange Office in previous years for funding investments abroad are also under review.

Companies and individual investors have been asked to provide documents detailing the use of transferred funds, repatriated amounts, and commercial activities. Officials are coordinating with customs authorities to investigate expenditure justifications and ensure no involvement in money laundering or misuse of transferred funds.

In 2022, Morocco raised the annual limit on outbound investment transfers to 200 million dirhams, eliminating prior destination restrictions. Previously, investors could transfer up to 100 million dirhams for projects in Africa and 50 million dirhams for investments outside the continent.

Between January and October 2022, Moroccan investments abroad totaled 19.9 billion dirhams. The Exchange Office continues to monitor these investments closely, requiring documentation to justify expenditures and mandating revenue repatriation. Efforts to tighten oversight include signing agreements with international counterparts for data sharing.