Bank Al-Maghrib (BAM) — Morocco's Central Bank

Overview

Full Legal Name: Banque Centrale du Maroc (Bank Al-Maghrib)

Established: 1959

Type: Central Bank of the Kingdom of Morocco

Official Website: www.bkam.ma

Bank Al-Maghrib (BAM) is the central bank and monetary authority of the Kingdom of Morocco. Established in 1959, BAM exercises comprehensive oversight of the national financial system, including monetary policy implementation, banking supervision, payment systems regulation, and foreign exchange management. As Morocco's Layer 1 regulator, BAM holds binding legal authority over all financial institutions operating within the kingdom.

Under the leadership of Governor Abdellatif Jouahri (appointed 2003), BAM has been recognized internationally for its regulatory excellence, including being named Central Bank Governor of the Year for Africa in 2024 by The Banker (Financial Times) and receiving an "A" rating from Global Finance in 2025.

Basic Identity

Classification

Inclusion Justification

What This Entity Oversees

Prudential Supervision

Bank Al-Maghrib exercises comprehensive prudential supervision of credit institutions under Law No. 103-12, including:

• Capital adequacy requirements — Minimum capital and reserve ratios for credit institutions
• Asset quality assessments — Classification of assets, loan-loss provisioning, and stress testing
• Liquidity management — Liquidity coverage ratios and asset-liability management standards
• Risk management frameworks — Credit risk, market risk, operational risk, and interest rate risk policies
• Accounting standards — Uniform accounting rules and financial reporting requirements

On-Site and Off-Site Inspections

BAM conducts regular supervisory reviews:

• Off-site supervision — Analysis of financial reports, regulatory filings, and risk metrics
• On-site examinations — Direct inspections of credit institutions' operations, controls, and compliance
• Regulatory reporting — Quarterly and annual prudential returns submitted by supervised institutions

Participatory Banking Regulation

Following the modernization of Morocco's banking law in 2015, BAM regulates participatory (Islamic) banking institutions under Law No. 103-12, which established:

• A dedicated legislative framework for participatory banking
• Compliance with Islamic finance principles (Sharia-compliant products and operations)
• Governance structures including consultation with Morocco's Higher Council of Ulema (fatwa authority)
• Deposit guarantee protections for participatory banking products
• Prudential standards adapted to participatory banking models

Deposit Guarantee System

Law No. 103-12 established a modernized deposit guarantee framework:

• Collective Deposit Guarantee Fund (FCGD) — Managed as a limited company by BAM and credit institutions
• Deposit Guarantee Fund of Participatory Banks — Separate fund for Islamic banking deposits
• Coverage limits and eligible deposits defined by regulation Requires verification from official sources
• Payout mechanisms in case of credit institution failure

Customer Rights Framework

Bank Al-Maghrib protects credit institutions' customers through:

• Protection regulations — Comprehensive rules governing customer treatment and fair practices
• Deposit guarantee — Coverage of eligible deposits up to regulatory limits in case of institution failure
• Complaint mechanisms — Procedures for customers to lodge complaints against banks
• Transparency requirements — Disclosure of fees, terms, and conditions for banking services
• Fraud prevention — Standards for secure payment systems and customer data protection

Regulatory Framework

Law No. 103-12 includes specific provisions for "Protection of credit institutions customers," establishing:

• Customer notification requirements
• Fair pricing and fee disclosure
• Resolution mechanisms for disputes
• Investigation and remediation procedures for customer harm

Payment System Security

BAM establishes and enforces security standards for payment systems to protect consumer funds and data, including:

• Encryption and authentication requirements Requires verification from official sources
• Cybersecurity standards for payment processors
• Incident reporting and response protocols
• Fraud detection and prevention measures

Regulatory Powers

Supervisory Authority

Bank Al-Maghrib exercises the following enforcement powers under Law No. 103-12:

1. Licensing and Authorization — Approval of new credit institutions and payment institutions before market entry
2. Condition Setting — Imposition of operational conditions and restrictions on authorized entities
3. Corrective Action Powers — Issuance of directives to remedy identified deficiencies
4. Sanction Authority — Administrative sanctions including warnings, fines, and restrictions on activities
5. Suspension and Revocation — Withdrawal of authorization for serious violations or insolvency

Crisis Management and Resolution

Law No. 103-12 requires credit institutions to prepare:

• Ex-ante internal crisis recovery plans — Describing options to restore financial condition in hypothetical crisis scenarios
• Resolution frameworks — Designed to minimize systemic impact without creating additional costs for the State or taxpayers

BAM possesses tools to address banking difficulties and manage the orderly resolution of failed institutions.

Sanctions and Penalties

BAM may impose administrative sanctions for violations of banking laws and regulations, including:

• Monetary penalties and fines
• Suspension of specific activities or services
• Restrictions on management or operations
• Public warnings and disclosure of violations
• Revocation of licenses and authorization

Regulatory Role and Function

Legal Foundation

Statutory Framework

Bank Al-Maghrib operates under the following primary legal authorities:

• Law No. 40-17 on the Statutes of Bank Al-Maghrib — Establishes BAM's organizational structure, governance framework, and fundamental mandate
• Law No. 103-12 on Credit Institutions and Similar Bodies — Promulgated by Royal Decree (Dahir) No. 1-14-193 of 1st Rabii I 1436 (December 24, 2014), effective June 22, 2015. This is Morocco's primary banking regulation law governing credit institutions, payment institutions, and participatory banking

Core Mandates

Per BAM's statutes and Law No. 103-12, BAM is responsible for:

1. Monetary Policy — Issuing and managing the Moroccan Dirham (MAD), implementing monetary policy to ensure price stability
2. Banking Supervision — Prudential regulation, accounting rules, and on-site and off-site supervision of all credit institutions
3. Payment Systems — Monitoring and securing the stability of payment systems and market infrastructures
4. Foreign Exchange Management — Managing Morocco's foreign exchange reserves and foreign exchange operations
5. Financial Stability — Addressing banking difficulties and maintaining systemic stability
6. Consumer Protection — Protecting credit institutions' customers through deposit guarantees and complaint mechanisms

Supervisory Jurisdiction

BAM's supervisory responsibilities encompass:

• Credit institutions (commercial banks, investment banks)
• Payment institutions offering payment services
• Participatory banking institutions (Islamic finance)
• Grouped Moroccan Interbank Remote Clearing System (GSIMT)
• Financial market infrastructure and settlement systems

Licensing and Authorization Relevance

Central Bank Digital Currency (CBDC) — e-Dirham

Bank Al-Maghrib is developing the e-Dirham, a CBDC designed to modernize Morocco's payment infrastructure:

• Development timeline — CBDC project initiated in 2019 with technical assessments
• Phase 1 (Completed) — Initial pilot focused on peer-to-peer retail digital payments
• Phase 2 (Active) — Second trial for cross-border CBDC transfers conducted in collaboration with the Central Bank of Egypt and the World Bank
• Objectives — Reduce cash reliance, enhance payment system efficiency, and strengthen cross-border payment rails
• International coordination — Conducted with IMF and World Bank support for impact assessment

Fintech Regulation and Sandbox

Bank Al-Maghrib has established a supportive regulatory environment for fintech innovation:

• Morocco FinTech Center — Public-private partnership supporting innovative fintech projects
• Test-and-Learn Approach — Regulatory sandbox mechanisms allowing limited-scale testing of new services and business models
• Regulatory Evolution — Flexible oversight adapted to fintech services' specific characteristics
• Continuous Dialogue — Ongoing engagement with fintechs to evolve regulatory frameworks

Cryptocurrency Regulation

• Regulatory Development — Bank Al-Maghrib and the Ministry of Economy and Finance are developing comprehensive crypto legislation
• 2025 Initiative — Draft cryptocurrency law advanced to the Ministry of Economy for technical committee review and adoption process
• Regulatory Objectives — Safeguard consumers and investors, strengthen market integrity against fraud and AML violations, protect financial stability
• Future Framework — Expected to establish supervisory regime for crypto service providers while maintaining asset restrictions

Payments and Money Movement Relevance

Legal Framework for Payment Systems

Bank Al-Maghrib regulates payment systems under a comprehensive legal framework established through:

• Multilateral Payment System Supervision Agreement (signed January 2009)
• GSIMT Statutes and Regulations — Governing the Grouping of the Moroccan Interbank Remote Clearing System
• Central Settlement Accounts Agreements — Between BAM and participants in Morocco's Gross Settlement System
• Law No. 103-12 provisions on payment institutions — Defining payment service providers and their regulatory obligations

Payment Service Providers

Under Law No. 103-12, payment institutions are defined as entities that "offer one or more payment services and may also, in compliance with the laws and regulations in effect, provide foreign exchange operations." BAM regulates:

• Payment processors
• Money transfer companies
• Electronic payment platforms
• Remittance service providers
• Money service businesses (MSBs)

Regulatory Requirements for Payment Institutions

Payment institutions must operate under conditions of safety, efficiency, and security as prescribed by BAM regulations. Key regulatory elements include:

• Capital and prudential requirements
• Know-Your-Customer (KYC) and Anti-Money Laundering (AML) compliance
• Customer protection standards
• Transaction reporting and monitoring
• Secure operational frameworks

SWIFT and Correspondent Banking

BAM maintains oversight of Morocco's participation in the global financial messaging infrastructure. Moroccan banks operate SWIFT codes managed by BAM and participate in correspondent banking networks under BAM's supervisory framework. Requires verification from official sources BAM coordinates with international financial institutions for cross-border payment clearing and settlement.

Payment Systems Governed or Overseen

The BAM operates and/or oversees the national payment and settlement infrastructure of Morocco. Specific systems include:

[Further detail on specific system names requires verification from official sources]

Relationship to Other Regulators

Institutional Memberships and Participation

Bank Al-Maghrib participates actively in major international financial institutions and forums:

• International Monetary Fund (IMF) — Member country with executive representation and technical cooperation programs
• World Bank Group — Active borrowing member and participant in development initiatives
• Bank for International Settlements (BIS) — Membership and participation in Basel Committee standards development
• Arab Monetary Fund (AMF) — Regional central banking cooperation
• FATF and Regional Bodies — Anti-money laundering and countering terrorism financing coordination

2023 IMF and World Bank Annual Meetings

Bank Al-Maghrib hosted the historic 2023 Annual Meetings of the IMF and World Bank in Marrakech (October 9-15, 2023) — the first time these meetings returned to Africa since 1973 (Nairobi). The event demonstrated BAM's capacity for high-level international coordination and financial governance.

Central Bank Digital Currency Cooperation

BAM collaborates with international partners on CBDC development:

• World Bank support — Technical assistance and impact assessments for e-Dirham pilots
• IMF coordination — Policy discussions on CBDC implications for monetary policy and financial stability
• Cross-border initiatives — Participation in multi-central-bank CBDC projects (e.g., Egypt collaboration for cross-border transfers)

Correspondent Banking and Foreign Reserves

BAM maintains:

• Correspondent banking relationships with major global financial institutions
• Sustainable Development Bond investments (World Bank)
• Foreign exchange reserve management aligned with international best practices
• Regular coordination with peer central banks on standards and practices

Geography and Jurisdiction Notes

Important Departments and Divisions

Key Public Resources

Headquarters and Primary Contact

Name: Bank Al-Maghrib (Banque Centrale du Maroc)

Primary Address:

Avenue Annakhil (Hay Riyad)

10110 Rabat, Morocco

Telephone: +212 (0) 802 001 111

Fax: +212 (0) 537 112 067

Website: www.bkam.ma

Official Language: French and Arabic

Leadership

Governor: Abdellatif Jouahri (appointed 2003)

• Recognized as Africa's Central Banker of the Year (2024)
• Rated "A" by Global Finance (2025)
• Requires verification from official sources Manages monetary policy decisions and bank strategy

Director General: [UNVERIFIED — not currently confirmed in available sources]

Regulatory Contacts

Banking Supervision Department: [UNVERIFIED — specific department contact details not confirmed]

Payment Systems Division: [UNVERIFIED — specific department contact details not confirmed]

Consumer Protection: [UNVERIFIED — specific department contact details not confirmed]

For specific departmental contacts, consult the BAM website contact directory or call the main telephone line.

Important Websites and Resources

• Official Website: https://www.bkam.ma/
• About BAM: https://www.bkam.ma/en/About-us/
• Banking Supervision: https://www.bkam.ma/en/Banking-supervision/
• Payment Systems: https://www.bkam.ma/en/Systems-and-means-of-payment/
• Financial Inclusion: https://www.bkam.ma/en/Financial-inclusion/

Notes on Naming and Language