Europe wants to block money transfers of Moroccans living abroad

"Several banking authorities in EU countries have decided to suspend the intermediation activity carried out by bank subsidiaries located in Europe for the diaspora and for the benefit of their Moroccan parent company. The conditions for providing this activity will be further tightened if the draft European directive concerning the branches of third countries is voted on as it stands," explains the magazine Finances News Hebdo.

The European Union wants to take advantage of Brexit to put an end to the transfer of cash from foreign banks established in Europe to their country of origin, without creating value on European territory. A measure that will affect the money transfers of Moroccans in Europe through Moroccan banks present in 7 European countries. These Moroccans living abroad send nearly $10 billion to Morocco each year, thus helping to boost the kingdom’s economy, the publication recalls.

The European directive therefore aims to prohibit foreign banks not established in the EU from offering banking services to their clients residing in an EU member country. "It is thus planned that any provision of banking services by third-country companies will henceforth be conditional on the prior establishment of a branch (SPT), or even a subsidiary, on the territory of the Union, approved for this purpose. Which could become costly for our Moroccan establishments," details the magazine.

In addition, the upcoming entry into force of the OECD convention on the exchange of tax information is likely to further complicate the money transfers of Moroccans living abroad, who will be forced to turn to specialized payment institutions, which are not covered by the European directive.