Legal Framework
From The Report: Morocco 2013
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OBG introduces the reader to the different aspects of the legal system in Morocco, in partnership with Kettani Law Firm. Nadia Kettani, Partner, Kettani Law Firm, talks to OBG.
Articles from this Chapter
Global standards: Modernising the legal system to attract foreign investors
Modernising financial laws: Tracking efforts to raise standards in the derivatives marketOBGplus
The modernisation of financial trading has necessitated the enactment of new legislation. While only in draft format, these laws indicate a drive to upgrade the legal environment for domestic and global trading. The Draft Law 42-12 (April 19, 2012) on derivatives exchange, stipulates the rules to organise the derivatives market and to ensure regulation by Bank Al Maghrib and the Financial Markets Authority (Conseil Dé ontologique des Valeurs Mobiliéres, CDVM) over derivatives transactions…
Moving money: Steps to codify the regulation of foreign exchangeOBGplus
With the modernisation of financial laws, it has also been necessary to reform and adapt Moroccan foreign exchange regulation. On November 16, 2011, the legislator enacted the Moroccan Office of Exchange (MOE) Circular, in the process compiling and codifying 815 articles for all regulation applicable to foreign exchange. ACCOUNTS & CURRENCY: The Circular permits local banks to open accounts in dirham and foreign currency for corporate and individual clients. Local banks can also open bank…
Cash flow and capital: An overview of corporate law and recent reformsOBGplus
While the law provides for a wide variety of corporate structures, most companies are joint stock companies, governed by Law 17-95, as amended, or limited liability companies (LLCs) governed by Law 5-95, as modified. Joint stock companies are required to have no less than five shareholders and a minimum capital of Dh300,000 (€26,670), or Dh3m (€266,700) if listed on the Casablanca Stock Exchange. The management of a joint stock company may take two forms. STRUCTURE: The first form of joint…
New free zones: The ins and outs of offshoring to encourage foreign investmentOBGplus
Part of Morocco’s strategy to attract foreign investors is the creation of free zones. To date, six integrated industrial zones have been established, all within the region of Tangier, and with each one dedicated to a different sector of the economy, including car manufacturing, aeronautics and sports, among others. Prime Ministerial Circular No 9/2007 created nearshoring zones, dedicated to service industries, such as call centre outsourcing. Two nearshore zones now exist, with a further four…
Increased commitment: Standardising health care provision and labour policiesOBGplus
Decree 1-02-296 (October 3, 2002) promulgated Law 65-00 to form mandatory basic health coverage. In essence, this law demonstrates increased commitment from the state to ensure free medical services to the population, as well as the provision of quality medical services to all segments of the community. AREAS COVERED: Several decrees have been adopted to further implement provisions of the law, such as Decree 2-09-299 (December 11, 2009), which completed Decree 2-05-737 (July 18, 2005). This…
Status report: The advantages attached to gaining CFC statusOBGplus
Law 44-10 enacted in December 2010, created the first Moroccan financial centre. Since the kingdom represents Africa’s second-largest market capitalisation, the common ambition of the Moroccan legislature and the Casablanca marketplace is to create a financial centre that will attract international and regional investments from the Maghreb and West Africa. GAINING STATUS: Law 44-10 created Casablanca Finance City (CFC) status; which is granted to financial companies to exempt them (within…
Nadia Kettani, Partner, Kettani Law Firm, on new banking legislationOBGplus
Among the main legal reform projects for the upcoming year is the insertion by the legislator of new legal provisions applicable to the banking industry. A draft law has been established and should be enacted soon. The Justice and Development Party elected in 2011 has decided to reshape Law 34-03, notably by bringing Islamic finance into the banking market. However, the underlying spirit of banking reform initiated by the new government is not limited to enabling Islamic financial products to enter…
