Faced with a new European directive that threatens to disrupt money transfers from Moroccans living abroad (MREs), Morocco is refusing to stand idly by. Authorities, banks, and financial institutions are mobilizing to counter this latest hurdle, which could have significant consequences for the national economy.
The directive, adopted by the European Parliament and published in the official journal on June 19, 2024, is set to take effect on January 1, 2026. While its official purpose is to limit the operations of British banks in the EU following Brexit, its impact extends beyond the UK. The regulation also affects non-EU foreign banks, including Moroccan institutions operating in seven European countries through branches and representative offices.
As a direct consequence, remittances from MREs—an essential economic lifeline for Morocco—could face major disruptions. These transfers play a crucial role in the country’s balance of payments and banking system, with MRE deposits accounting for approximately 20% of total bank holdings. If the new regulations slow down or block these transactions, the Moroccan economy could take a serious hit.
Aware of what is at stake, Bank Al-Maghrib (BAM), Moroccan banks, and the ministries of Foreign Affairs and Economy & Finance have formed a permanent task force. Their mission is to negotiate with the European Commission and financial regulators in key countries, including France, Spain, Italy, Belgium, and the Netherlands.
As part of this effort, discussions have begun with European central banks to determine how each member state plans to interpret and implement the directive. Since EU-wide regulations often allow for national variations in enforcement, understanding these nuances is critical for Morocco.
With uncertainty looming, Moroccan authorities are exploring multiple strategies to ensure the continued flow of MRE funds. Among the potential solutions:
Expanding digital transfer solutions to bypass potential restrictions and ensure fast, secure transactions.
Adopting financial models used by other nations facing similar regulatory constraints.
Pursuing high-level political advocacy, with Prime Minister Aziz Akhannouch personally overseeing the task force’s efforts to refine Morocco’s response strategy.
If the directive is applied strictly, MREs could face delays, higher fees, or even outright complications in transferring money home. This would be a major setback, given that remittances have more than doubled in the past decade, becoming a vital source of funding for Morocco’s economy.
Determined to safeguard these financial flows, Morocco is prepared to fight tooth and nail to maintain banking services for its diaspora. Beyond diplomatic efforts, digital solutions may prove to be the country’s strongest weapon in circumventing European constraints while protecting both MREs and the national economy.
