Financial intelligence authorities in Morocco have placed parts of the real estate sector under heightened scrutiny following alerts submitted by notaries and real estate professionals in Casablanca, Tangier, and Marrakech. Sources say the notifications prompted action by the National Financial Intelligence Authority after the receipt of sensitive information pointing to organized money laundering activity carried out through distressed property projects.
Investigators identified warning signs suggesting that newly created real estate companies and unfamiliar developers had entered the market and carried out large acquisitions of stalled construction projects. In several cases, the projects had been inactive for extended periods, in some instances for years. The purchases were reportedly accompanied by substantial upfront payments that allowed sellers to lift bank seizures and other encumbrances affecting the properties. These transactions were reportedly structured to appear fully compliant. Sales contracts were executed through notarial offices, and all required taxes and fees were paid, a process that reduced the likelihood of triggering immediate scrutiny by financial oversight bodies.
As part of the response, inspectors from the National Financial Intelligence Authority opened investigations into three buyers considered high risk. These inquiries were initiated following intelligence shared by foreign partner agencies, particularly in Spain and The Netherlands. The information suggested possible links between the individuals involved and international drug trafficking networks. Suspicion was further reinforced by the fact that two of the individuals do not normally reside in Morocco and hold additional nationalities.
Investigators requested supplementary data from the Office des Changes regarding the suspects’ financial accounts and assets both inside and outside the country. Parallel checks were conducted in coordination with Bank Al-Maghrib and the General Directorate of Taxes to assess the financial and tax position of new market entrants.
These reviews revealed significant discrepancies between the stated market value of some acquiring companies and the actual scale of their real estate transactions. Two firms, in particular, appeared to focus almost exclusively on acquiring projects burdened by bank seizures. Transfer deeds in these cases were often paired with debt settlement agreements benefiting third parties such as suppliers, construction contractors, and finishing companies.
Official figures highlight a broader rise in enforcement activity. The National Financial Intelligence Authority forwarded 84 case files to public prosecutors in Rabat, Casablanca, Fez, and Marrakech in matters linked to money laundering and related offenses, representing an increase of more than 18 percent between 2023 and 2024. During the same period, the authority received more than 8,000 suspicious transaction reports related to money laundering and terrorism financing, up sharply from 1,088 in 2018 and continuing an upward trend recorded in subsequent years.
Investigators also documented the varied reasons behind the distress of the projects acquired by the suspected buyers. These ranged from construction work that failed to meet regulatory standards and therefore could not receive occupancy approvals, to properties seized by banks after developers defaulted on loan repayments. Other projects were halted due to legal disputes between developers and contractors or because construction firms suspended operations or declared bankruptcy amid rising material costs, wage pressures, and equipment rental expenses.
According to the same sources, the suspected buyers relied heavily on accounting and tax advisory firms when acquiring troubled projects. This support facilitated complex debt restructuring arrangements that authorities believe were designed to obscure the true nature of the transactions. In several instances, parties moved beyond straightforward property sales and used alternative mechanisms such as the acquisition of company shares, asset disposals tied to corporate exits, and the rescheduling of debts, guarantees, and other financial obligations through negotiated repayment protocols.
