Morocco - Apply for a Banking Business license

ProcedureEdit

A banking license is a prerequisite for a financial institution that wants to provide banking services such as taking deposits from the general public and then lends the money under its control to other individuals and entities at an agreed upon rate of interest.These institutions must exclusively hold a banking license.The banking industry in Morocco is highly regulated.

The following are the steps needed to obtain a Banking License in Morocco.

Before applying for a Bank business License from the registrar of companies, the applicant must obtain a permission from the banking regulatory body in which the bank is established. There is a relatively long and complicated procedure that goes into the application process to obtain a Banking License in Morocco.

Step 1 After obtaining a permission to start a Banking service from the principal regulatory banking sector(Central Bank of Morocco) (Bank Al Maghrib)register the name of the Bank with the registrar of companies in Morocco. Only those individuals or corporations that have been thoroughly investigated are allowed to provide banking services to the public by the registrar of companies.

Step 2 Register with the Ministry of Finance and trade in Morocco.To exercise any banking activities in Morocco, authorization is required from the Ministry of finance and Bank al Maghrib. The Moroccan Ministry of finance and trade authority controls organizations that engage in any activity related to the capital market.

authorization or refusal is notified within a maximum period of four months, as from the date of final acceptance of all documents and necessary information. Non-bank entities in a banking group do not require any regulatory approval from the Ministry of Finance.

Step 3 The applicant must attend a meeting with Bank al Maghrib officials. The promoters of the bank must keep a record of the Signed minutes of the first meeting along with attendance sheet. should a plan of customers deposits on account and is required to provide the customer with access to his funds upon demand. Since there is a high degree of trust involved in the process, a banking license is only granted in instances where the regulators are convinced there is no risk that the people running the bank will default on its obligations to the public.

Step 4 Submit a prospectus which is a printed statement that describes and forecast the course or nature of the company along with expected risks distributed to the prospective investors.This is so because the license requirements are typically strict to stave off bank failures and the collapse of public confidence.

You should also note the following aspects.

i). Banks are required to report the financial statements for each semi-annual period.

ii). Banks are required to periodically report to the management of the banking supervision of Bank al-Maghrib specifically reporting on the risk management of liquidity.

iii). Each semester, banks should communicate the statements of calculation of the minimum coefficient of solvency.

Step 5 The Next step will be to write an application letter requesting the central bank of Morocco to grant you a Banking license to operate a banking Service in Morocco,you should also indicate the various bank branches you intend to operate in different parts of the country.Banking license can be granted swiftly if the necessary requirements are met. There are no requirements for local offices or staff, although local offices can be arranged at a minimal cost.

Step 6 Attach on the application the due diligence requirements as indicated below:-

i). A detailed business plan of the company: Activities of the bank; other Countries in which the bank is looking to invest; The percentage of ownership by the shareholders; The details of the ultimate beneficial owners (chart may help if many); Any other useful information to support the application.

ii). CVs of all the directors

iii). Full contact details of the directors and shareholders ( questionnaire)

iv). Bank reference for all the beneficial owners

v). Clear certified passport copies of all beneficial owners

vi). Proof of addresses (utility bills)

vii). Business or legal reference for

Required DocumentsEdit

i) The application form together with all required documents.

ii) Proof of payment on application fees.

iii) News paper publication a copy

iv) Directors minimum share capital.

v) Proof of Paid up capital in the central Bank of Morocco.

v) Directors, the chief executive officer and senior executive officers of the bank shall meet the qualification criteria prescribed by the Central Bank;

Office Locations & ContactsEdit

Bank Al-Maghrib

Address

Angle Avenue Allal Ben Abdellah et Rue Al-Qahira,

B.P.445 - Rabat, Maroc.

Telephone : +212(0)5 37 70 26 26

Tlphone : +212(0)5 37 20 67 69

E-mail : [email protected]

Website: http://www.musee.bkam.ma

Moroccan Financial Board

Twin Center, Level 11 floor

Boulevard Al Massira Al Khadra

Casablanca, Morocco.

Tel: +212 5 20 30 03 80/81

Fax: +212 5 20 30 03 82

EligibilityEdit

i)For a Commercial Banks to obtain a banking business license must be corporate body or corporation duly licensed by Bank AL Maghrib to accept Deposit,lend money,issue money to clients, buy foreign currency and draft and sell foreign currency.

ii)The Commercial banks applicant must be a Moroccan Nationality or foreign resident but residing in Morocco.

iii)The bank must be registered for banking Business in Morocco with the registrar of Companies.

FeesEdit

Explain the fees structure which is required for obtaining the certificate/document.

ValidityEdit

One Year

Documents to UseEdit

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Sample DocumentsEdit

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Processing TimeEdit

Four Month

InstructionsEdit

i). The Bank AL Maghrib has broad powers in the affairs of banks. It can suspend or remove a CEO, director or other senior executives,

ii) The central bank of the Kingdom of Morocco, named "Bank Al-Maghrib", is a public legal entity endowed with financial autonomy. It was created in 1959 in substitution for the former "Banque d'Etat du Maroc".

iii) No person shall carry out a Banking business in Morocco unless he/she is in possession of a Banking Business License.

Required InformationEdit

i) Name of Applicant

ii) Address of Applicant

iii) Bank location

iv) License Number

v) A tax clearance certificate.

vi) Proof of legal identification.

vii) Proof of legal address.

Need for the DocumentEdit

The Moroccan banking system is composed of six banks,mostly domestically privately owned, and five banks mostly foreign owned. There are a further 5 which are publicly owned. in 2008, the government controlled, directly or indirectly,about 23% of the banking sector. This was down from 40%in 2002

Despite strict government regulations through lending quota, bond buying, windfall tax and increased capital requirements,Banking Business in Morocco is not at all a difficult business to start,the only hurdle is a language barrier if you dont speak French, Arabic or Darija fluently. you may be required to hire a translator to resolve that issue of language barrier.Bank AL Maghrib is the largest, controlling the majority assets of the industry. The following are the responsibility of Bank Al Maghrib

exercise the privilege of issuing banknotes and coins that are legal tender in the Kingdom;
To implement monetary policy instruments in order to ensure price stability;
To see to the stability of the currency and to its convertibility;
To attend to the smooth running of the money market and to ensure its control;
To prepare and publish statistics on money and credit;
To manage public exchange reserves;
To see to the smooth running of the banking system and to the enforcement of legislative and regulatory provisions relative to the exercise and control of the activity of credit institutions and similar bodies;
To monitor and ensure the security of payment systems and means as well as the relevance of the norms applicable to them.

Information which might helpEdit

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External LinksEdit

http://www.naturallymorocco.co.uk/about-morocco/currency-and-banking.html

http://www.expat-blog.com/en/guide/africa/morocco/701-banking-in-morocco.html

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