He lost $ 4 billion .. Morocco gives money smugglers a last chance to settle their situation

Mariam Taidi-Rabat

"If Morocco has confidence abroad, the bet today is to restore that confidence at home, so that we can lay the foundations of a new phase, the responsibility and real citizenship, to build the future." Moroccan Minister of Finance, Economy and Administration Reform Mohamed Chaaboun defended the announcement of a settlement. Voluntary on property and assets held outside Morocco by persons who have breached their obligations (smugglers) towards the exchange office, and voluntary voluntary settlement at home in accordance with the measures taken within the budget bill of 2020.

Controversy of trust
The adoption of the procedure of acquittal - whether related to abroad or tax deductible - has sparked considerable controversy within Morocco between supporters and opponents who see it as encouraging smuggling and tax evasion, and normalization with them.

The acquittal is a voluntary tax settlement based on the principle of amnesty for offenders in return for settlement.

On November 25, Minister Chaaboun explained to the members of the Finance, Economic Development and Planning Committee of the second chamber of the Moroccan parliament after the public debate of the draft budget law 2020, that the government did not include in the budget one dirham of the resources that will come from the proposed innocent contributions, stressing that the goal These confidence restoration measures do not seek resources to fill the budget deficit.

50% of the proceeds of the acquittal will be allocated to the Social Cohesion Fund.

Adel al-Khasasi, an expert in financial legislation, believes that the taxation is motivated by the restoration of trust.

Al-Khasasi denied in a statement to Al-Jazeera Net that the innocent contribution would be normalized with smuggling, considering that the motive of some to smuggle money abroad is to disavow legal and regulatory requirements in force.

For his part, the international economist Hassan Haddad believes that confidence-building requires the resolution of the direct problems that violators complain and fear, which prevents them from recovering what was smuggled.

Haddad believes in an interview with Al Jazeera Net that who was unable to declare the first opportunity in 2014 when the procedure was adopted in the budget, he could have a chance, but to be given second opportunities to those with a history of smuggling and transfer of funds illegally, this "is unreasonable" .

Motivational pardon!
Acquisition of funds and property abroad or expulsion from Morocco without authorization by the competent authorities is a financial offense in Moroccan legislation subjecting its owner to administrative and judicial follow-up.

According to the procedure of acquittal, the Moroccan legislator stipulated that individuals should return liquid funds and sell at least 25% of them in the Moroccan exchange market in exchange for the dirham, with the possibility of depositing the remainder in accounts - in hard currency or in convertible dirhams - open with institutions. Credit approved as a bank in Morocco.

The legislator determined the percentage of the acquittal to 10% of the value of the acquisition of real estate property established abroad, and 10% of the value of the subscription or acquisition of financial assets and movable values ​​and other capital bonds or debt established abroad.

It also specified 5% of the amount of cash assets - in the currency returned to Morocco and deposited in accounts in foreign currency or in convertible dirhams, and 2% of the amount of liquidity in the currency returned to Morocco and sold in the Moroccan exchange market against the dirham.

The acquittal was described under the government of Abdelilah Benkirane as a policy of "God forgive the foregoing," and enabled Morocco to recover 27.8 billion dirhams ($ 2.9 billion) to the state treasury at the end of 2014 after registering 19 thousand automatic permits, and was then considered an exceptional measure, Did this recipe succeed in achieving the "repentance" of some violators?

Al-Khasasi believes that the measure remains a form of harmonization with the development of international financial legislation, an exceptional measure that is justified politically, legally and economically, while Hassan Haddad considers that streamlining procedures, flexibility of exchange, and deregulation are ways to solve the problem of smuggling.

Haddad criticized the different ratios between liquid and in-kind assets, pointing out that opening an account in foreign currency is sufficient.

Multilateral agreement
On June 25, Morocco signed a multilateral agreement for the automatic exchange of information on financial accounts with OECD countries, which will enter into force from 2021, so 2020 will be the last opportunity to declare property and cash assets abroad and settle the situation.

Al-Khasasi says that the financial legislator, as it seeks to fortify financial transactions and practices, is called to open up and liberalize the Moroccan economy based on international commitments in its dealings with international economic organizations and donor agencies, considering that the smuggling of funds is no longer a national internal matter but exceeding the geographical boundaries of countries and any effort in This cannot be done in isolation from international cooperation.

Morocco lost more than 37 billion dirhams ($ 3.85 billion) due to smuggling of funds abroad between 2006 and 2015, according to a financial integrity report. Manipulation of the value or volume of export or importation on invoices is one of the most important methods of smuggling.

Morocco is working on a range of fronts to reduce financial corruption through laws to combat money laundering, bribery and other outlets of black money.