Casablanca Finance City Expands Scope with 6 New Sectors, Reinforcing African Financial Leadership

A true African economic and financial hub, "Casablanca Finance City" needs increased compliance with international standards. This is how the draft decree-law N 2.20.665 relating to the reorganization of the Casablanca financial hub "Casablanca Finance City" was recently approved by the Government Council, aimed at strengthening the transparency and nature of the activities carried out within CFC and improving its attractiveness, particularly for companies eligible for the Casablanca financial hub status, reports La Map. This is a decree-law that is part of the alignment of the CFC status with international best practices, and which comes to expand this status to new activities and modify the operating and governance procedures relating to the CFC status.

With a business community of over 200, CFC has become an essential gateway for operators wishing to develop their African expertise and take advantage of the synergies and business opportunities offered by this network.

Issam El Maguiri, an accountant, told La Map that this decree-law has expanded the CFC status to six new activities: investment companies, collective investment undertakings, financial investment advisers, services related to crowdfunding platforms, trading companies and technical service providers on behalf of entities of a group of companies. This decree-law, he points out, "no longer distinguishes between Moroccan and foreign persons for the granting of the CFC status," adding that, for example, the activity of wealth management is now eligible for the CFC status whether it is intended for Moroccan or foreign, resident or non-resident individuals.

For their part, assures the expert, holding companies will see their conditions for obtaining the label relaxed, while this change will allow companies eligible for the CFC status to be organized into financial companies and non-financial companies in accordance with the provisions of Articles 4 and 5 of the aforementioned decree-law, excluding financial companies that receive funds from the public within the meaning of Article 2 of Law N 103.12, relating to credit institutions and similar organizations or those whose part of the activities is carried out with natural persons outside private wealth management.

Furthermore, it should be noted that the changes introduced by Decree-Law N 2.20.665 would improve the attractiveness of foreign and Moroccan investors given the tax advantages granted to CFC-labeled companies, in particular the exemption from withholding tax on dividends and other similar participation income distributed to resident and non-resident beneficiaries (individuals or legal entities).