What leaving FATF grey list means for Morocco
Morocco has taken measures to improve financial transparency and protect its economy against money laundering and terrorism financing, earning a well-deserved exit of the grey list of the Global financial crime watchdog Financial Action Task Force.
The Moroccan government welcomed the FATF decision which will “positively impact the sovereign and local bank ratings in addition to improving Morocco’s image and its position in negotiations with international financial institutions as well as fostering trust of foreign investors in the national economy.”
Leaving the grey list would also give a significant push to Morocco as it aspires to regain its investment grade which it lost two years ago.
The news reverberated in Casablanca stock exchange where the main index immediately gained 1.6% right after the announcement.
The news came as a boon for Morocco which has launched a roadshow for a dollar-denominated bond for which it has mandated BNP Paribas, Citi, Deutsche Bank and JPMorgan as joint lead managers and joint bookrunners to arrange meetings with investors.
The decision came after Morocco aligned its legislation against money laundering and terrorism financing with FATF standards, meeting all requirements.
As Morocco shows the way for the rest of Africa in terms of best financial practices, South Africa has entered the grey list.
Leaving the grey list also pulls the rug from under the feet of European circles hostile to Morocco which have been putting forward uncorroborated accusations that Rabat bribed EU politicians.
Morocco has proved its compliance with FATF standards and is setting the example for the rest of Africa to follow suit.