Major Casablanca Bank Embroiled in Real Estate Loan Fraud Scandal

The officials are accused of having granted certain clients real estate loans exceeding the requested amount in order to cover the registration and land conservation fees, in the form of development loans released on the basis of work invoices. The clients concerned presented falsified work invoices in order to obtain these loans, noted the control services, noting the complicity of the bank agents who did not respect the procedure for verifying loan application files.

According to Hespress, these "development loans" proposed to clients by the sales staff were in fact separate contracts from the granted real estate loans. The bank in question has decided to temporarily suspend the approval of real estate loan applications accompanied by "development loan" requests until the end of the internal control and the determination of the losses incurred. Faced with these irregularities, the internal control services notably recommend ensuring the real value of real estate, particularly used property, by carrying out site visits and involving all stakeholders.

Responsible for overseeing the management of credit risks, Bank Al-Maghrib ensures constant monitoring of the financial situation of banks, which involves collecting data on loans and repayment habits. The central bank also publishes annual reports on banking activity and intervenes in the development of recovery plans and the appointment of temporary managers. It also imposes an executive supervisory framework to ensure the stability of the financial sector, the aim being to strengthen confidence in the banking system and protect the economy.