Morocco Intensifies Currency Controls, Threatens Hefty Fines and Jail Time for Violators

The Foreign Exchange Office is stepping up its controls to identify undeclared currencies and fraudulent capital outflows. In this context, it is conducting document-based investigations (exploitation of information systems to analyze documents and transactions) and on-site controls (audits and investigations with individuals and banks involved in transfers). These operations aim to ensure compliance with the regulations in force on exchange and to sanction offenders, relays Médias24.

Regarding foreign currency, Moroccan legislation does not set a ceiling for medical expenses and school fees abroad. For personal travel, an allowance of 100,000 dirhams is provided, with a 30% increase in income tax, the whole not exceeding 300,000 dirhams per person per year. Offenders face fines of up to six times the amount of undeclared currency as well as prison sentences of 3 months to 5 years.

Over the past five years, the Office has strengthened its control mechanisms. This, by equipping itself with technical and human resources for a digitization of information processing, by collaborating with the Directorate General of Taxes (DGI) and the customs administration for more targeted control, and by setting up a system of Computerized Data Exchange (EDI) with banks to have real-time information on capital flows.

As part of its 2022-2026 strategic action plan, the Office plans to further raise awareness of the regulations, strengthen controls, intensify the fight against money laundering and terrorist financing, adapt regulations to financial innovations and develop partnerships with professional institutions and associations. All these actions aim to offer more flexibility to Moroccan travelers and to ensure strict compliance with exchange regulations.