Europe Blocks Moroccan Remittances: New Banking Rules Impact

Money transfers from Moroccans living abroad are facing a new challenge in Europe. The tightening of operating conditions for Moroccan bank subsidiaries’ intermediation activities within the European Union is now one of the main concerns for Morocco’s national remittance ecosystem, said Abderrahim Bouazza, director general of Bank Al-Maghrib, in Rabat.

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Speaking at an event organized for International Day of Family Remittances, the official assured that this issue is being closely monitored by Moroccan authorities with their European counterparts. The stakes are high for Moroccan banks operating in Europe, which play a role in supporting Moroccans abroad and channeling their funds to Morocco.

France appears to be particularly concerned with this issue. Abderrahim Bouazza highlighted the support of French authorities in maintaining authorization to carry out certain so-called "relay activity" operations on French territory, through an adjustment of the legal framework. This development is being closely followed by Morocco, given the weight of the Moroccan community in France and the importance of transfers sent each year to the Kingdom.

Bank Al-Maghrib recalls that Morocco has undertaken several reforms to make remittances more efficient, more transparent, and less costly. The central bank notably cites the removal of exclusivity clauses imposed by certain international operators on their local partners, as well as the development of digital access to financial services.

Morocco now has a broader financial ecosystem, composed of the banking network, payment and money transfer institutions, microfinance institutions, crowdfunding platforms, and a public guarantee system for bank credits. However, significant gaps still persist between rural and urban areas, between men and women, and between young people and adults.

Beyond the European question, Bank Al-Maghrib believes that remittances from Moroccans abroad are still too little directed toward productive investment. According to the latest HCP survey cited by Abderrahim Bouazza, 87% of these funds are allocated to current household consumption. For the official, the complexity of administrative procedures, the business environment, and the lack of incentives continue to hinder their mobilization toward entrepreneurship, particularly in rural areas.

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Morocco now hopes to better direct part of this savings toward investment, in a context marked by several reforms, including the Investment Charter, the SME Charter, and the generalization of social protection. For Bank Al-Maghrib, these initiatives should create more favorable conditions for remittances from Moroccans abroad to better contribute to the country’s economic development.