Financial institutions under the supervision of Bank Al-Maghrib that fail to comply with regulatory requirements face disciplinary action—and in certain cases, legal proceedings under banking laws or other relevant legislation may follow. These penalties are determined and applied by Bank Al-Maghrib based on a range of factors, including the regulatory context, the severity and frequency of the violations, and the institution’s responsiveness in addressing the issues.
The most common sanction is a financial penalty. Bank Al-Maghrib has the authority to impose fines of up to 20% of the institution’s required minimum capital, and it can do so without prior warning. The types of infractions that can lead to such penalties are detailed in a directive issued in February 2007. These include failure to comply with accounting standards, breaches of internal control obligations, violations of prudential rules, and delays in submitting required information to the central bank. Other issues that can trigger sanctions involve improper handling of deposits, irregularities in lending practices, or non-compliance with obligations related to the deposit guarantee fund.
When a sanction is issued, the institution is officially notified in writing. This notice includes the alleged violations, the amount of the penalty, and the timeframe for compliance, which must be no shorter than eight days from the date of notification. The fine is typically deducted directly from the institution’s accounts held at Bank Al-Maghrib. If this isn’t possible, the payment must be made at the institution’s counters within the specified period. Should the deadline be missed, the Treasury takes over the collection process, acting on an official recovery order issued by the Minister of Finance or a designated representative.
In cases of professional misconduct, Bank Al-Maghrib may issue a formal warning to a bank after hearing explanations from its leadership. If the bank’s financial condition is found to be unstable or its internal controls seriously deficient, the central bank can go further by issuing a formal directive requiring corrective action within a set timeframe. In some situations, the institution may be ordered to submit a recovery plan, which could be supported by an assessment from an independent expert.
Not every case requires a formal injunction. Sometimes, a warning alone is used to encourage better regulatory compliance or improvements in management practices.
More severe or persistent problems may lead to intervention by the Credit Institutions Disciplinary Commission, as outlined in Law 103-12. This body evaluates the cases forwarded by Bank Al-Maghrib and recommends appropriate disciplinary measures to the central bank’s governor.
The Commission must be involved in certain scenarios: if a newly licensed institution fails to launch operations within a year, if business activity is halted for an extended period, if licensing conditions are no longer met, or if the bank’s financial health is deemed beyond repair. Intervention is also mandatory when warnings or injunctions fail to bring about change.
The Commission also plays a role in appointing provisional administrators, suspending bank executives, recommending the suspension of certain banking activities, or even revoking a banking license.
Its members include representatives from Bank Al-Maghrib, the Ministry of Finance, and judges appointed by the High Council of the Judiciary. The Director General of Bank Al-Maghrib—or a designated delegate—chairs the Commission. While the panel can seek insights from outside experts, these individuals do not have voting rights.
For meetings to proceed, at least four members must be present, including one from each participating institution. Decisions are made by majority vote, with the chairperson casting the deciding vote in the event of a tie.
Before any disciplinary decision is finalized, the institution’s legal representative is summoned and given access to all relevant documentation, including a detailed summary of the alleged violations. The Commission may also invite a representative from the relevant industry association to take part in the discussion.
All proceedings are subject to strict confidentiality, in accordance with banking law.
