Foreign exchange regulations: a wave of new measures for 2020

Efforts towards easing and simplification

On 31 December 2019, the Foreign Exchange Office published the new version of the General Instruction on Foreign Exchange Operations, whose provisions take effect from 1 January 2020. The main measures adopted essentially concern imports, exports of goods and services, and travel. “This 2020 version brings new liberalisation and easing measures for both current transactions and capital transactions”, explained Hassan Boulaknadal. He added: “The aim is to respond appropriately to the expectations expressed by both legal entities and individuals by putting in place a regulatory framework based on trust.” Among the key changes is the possibility for importers of goods to settle an import transaction exceeding the domiciled amount by more than 10%, provided that this excess is attributable to the customs services. Regarding exports of goods and services, it is now possible for importers of services to pay in advance for subscriptions to foreign databases and licence fees for up to 12 months.

Assets held abroad: launch of the voluntary regularisation scheme

During this round table, which brought together more than thirty Swiss and Moroccan operators, Hassan Boulaknadal also detailed the implementation arrangements for the voluntary regularisation of assets and cash held abroad. Pursuant to Article 8 of Finance Law No. 70-19 for the 2020 budget year, the voluntary regularisation scheme will run from 1 January to 31 October 2020. It is aimed at resident individuals or legal entities with a tax residence, registered office or tax domicile in Morocco who, before 30 September 2019, built up assets and cash abroad in breach of foreign exchange regulations. An unprecedented opportunity to comply with foreign exchange regulations and be freed from any administrative or judicial proceedings in respect of the assets covered by the declaration.

“This event is part of the Foreign Exchange Office’s outreach approach, which aims to provide economic operators with clarification on changes in foreign exchange regulations. At the heart of our approach is explaining the key measures governing the 2020 Finance Law. It provides for a voluntary tax regularisation scheme that allows Moroccans in breach of the rules to regularise their situation.” Hassan Boulaknadal, Director General of the Foreign Exchange Office. “We were able to discuss the remarkable changes that foreign exchange regulations are undergoing in 2020, for economic operators and legitimate users. The continuous and irreversible liberalisation process the sector is undergoing is fully in line with Morocco’s policy of better integrating the national economy into the global economy.” Younes Bouchelkha, Head of the Regulation and Legal Affairs Department at the Foreign Exchange Office. “This round table was very important as it enabled Swiss companies based in Morocco to learn about the new processes put in place by the Foreign Exchange Office. They can thus find out more about the issues that concern them: how to convert their dividends and how to use their convertible dirhams.” Amr Kallini, Vice-President of the Swiss Chamber of Commerce in Morocco.