Europe Complicates Morocco Remittances: MRE Transfers at Risk

Moroccan banks operating in Europe are facing an unexpected regulatory difficulty. Abdellatif Jouahri, Governor of Bank Al-Maghrib, explained on June 23 that their role as intermediaries in transfers from Moroccans residing abroad has been called into question by a European law adopted in the context of Brexit.

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According to him, this regulation was initially intended to prevent British banks from continuing to benefit from the European passport after the United Kingdom’s departure from the European Union. However, since the provision is general in nature, it also affected Moroccan banks present on the continent. "Since the provision is general, it also affected our banks," Abdellatif Jouahri summarized.

This development poses a sensitive problem for Morocco, as Moroccan banks operating in Europe have long played an intermediary role with Moroccans abroad. They notably facilitate operations to bank accounts in Morocco. Their relay function is therefore weakened by a regulation that did not directly target them initially.

Facing this situation, Rabat has set up a task force bringing together the Foreign Ministry, the main Moroccan banks concerned, Bank Al-Maghrib and the Treasury department of the Ministry of Finance. The objective is to defend the continuity of this banking activity and prevent new European rules from creating additional obstacles for transfers.

Bank Al-Maghrib first discussed with the European Commission, particularly with the FISMA directorate, responsible for financial services. However, Brussels referred the matter to Member States, explaining that each country had to transpose the regulation into its own national law. Morocco must therefore address the issue country by country.

This is what makes the matter complex. A solution found in one country does not automatically apply to others. Abdellatif Jouahri emphasizes that each European state maintains its own interpretation of the regulation. Morocco began with France, before expanding discussions to other countries where many Moroccans abroad reside.

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The Governor of Bank Al-Maghrib remains confident nonetheless. He believes that the discussions underway allow for hope of a positive outcome, even if the process will take time. According to him, the matter could continue throughout 2026. For now, remittances from Moroccans abroad continue to increase and no immediate concerns are reported.