Moroccan Tax Fraud Scandal: Money Laundering Ring Exposed in Casablanca-Tangier Business Corridor

These investigations were opened following alerts issued by the Directorate General of Taxes (DGI) reporting tax returns showing losses deemed unjustified, which raised suspicions about the use of these fictitious losses in money laundering operations. Conducted by ANRF inspectors based on data provided by the DGI services, these investigations focused on the declarations of three companies based between Casablanca and Tangier, operating respectively in the wholesale distribution of spare parts, interior design work, and the sale of sanitary supplies.

The investigations revealed irregularities in the commercial transactions and banking operations of these companies, whose managers are suspected of having links with drug trafficking networks. These managers used falsified invoices and fictitious transactions to deceive the tax authorities’ vigilance in terms of the actual volume of expenses and charges. The investigations also revealed that these companies used false minutes attesting to the destruction of goods and stocks, and bypassed insurance and compensation procedures.

The managers also inflated operating expenses such as fuel, accommodation or travel expenses. They also tried to exploit the weaknesses of the DGI’s computer control and data analysis systems. The Moroccan tax authorities are working to detect fraudulent maneuvers aimed at inflating losses or profits for tax evasion purposes. According to the investigators, accountants and bank officials would be involved in these illegal activities. They would have advised these companies and helped them establish custom-made tax and accounting declarations.

The ANRF has forwarded 71 files related to money laundering and terrorist financing to the king’s prosecutors at the courts of first instance in Rabat, Casablanca, Fez and Marrakech, as well as to the attorney general of the king at the Court of Appeal in Rabat. The institution’s 2023 report indicates a 31.48% increase in the number of cases referred to the public prosecutor’s office compared to the previous year. 38% of the cases brought before the courts are related to the falsification of bank statements, fraud, or money laundering.