Morocco Launches Major Crackdown on Gold-Based Money Laundering

Moroccan customs has initiated, in collaboration with the General Directorate of National Security (DGSN) and the Royal Gendarmerie, massive surveillance operations, in order to monitor the use of gold to settle drug sales and purchase transactions, as well as to launder funds from these operations through the purchase, resale, and manufacture of gold jewelry through legal commercial channels. These activities are particularly concentrated in the outskirts of Casablanca, Marrakech, El Jadida, Rabat and Kenitra.

Investigations have revealed that suspicious activity concerning gold is taking place in the mentioned areas, with an increase in falsified sales invoices and questionable bank transfers to the benefit of merchants. Similarly, ongoing investigations by customs inspectors have revealed verified information concerning the growing use by drug trafficking networks, of all categories, of gold to settle their transactions immediately, confirm sources close to Hespress. A strategy that allows traffickers to escape the vigilance of the financial authorities by avoiding cash payments and bank transfers, as well as the purchase of movable and immovable property.

Customs inspectors also collaborate with financial institutions to monitor gold-related commercial transactions, in order to detect any suspicious activity, particularly money laundering. They ensure compliance with the requirements for reporting financial transactions exceeding a certain amount, including through suspicious activity reports and adherence to international standards. They also examine in detail the serial numbers and registered seals on gold jewelry seized during drug trafficking operations.

Linked to international standards for combating the financing of terrorism and money laundering, such as those established by the Financial Action Task Force (FATF), it has proven important for Morocco to guard against increased scrutiny of transactions related to the precious metal and verification of the identity of clients and suppliers.