Moroccan Diaspora Transfers: The New European Law Threatens Moroccan Banks

The alert comes from the BMI-Fitch Solutions agency: the mandatory implementation of this European directive risks shaking up the financial landscape for Moroccans around the world. By imposing a single and strict framework, Brussels is putting an end to the national systems that allowed for a certain flexibility. From now on, the branches of banks from third countries, including those from Morocco, could be classified as "high-risk" entities, forcing them to comply with drastic control standards.

The danger is economic and structural. If their assets exceed certain thresholds or if they are deemed systemic, these branches could be forced to transform into fully-fledged subsidiaries. A transformation that would lead to an explosion in operating costs, between technological upgrades and capital requirements. Faced with this financial pressure, Fitch fears that some Moroccan banks may reduce their presence, or even withdraw completely from the European market. A scenario that would deal a severe blow to the financial flows of Moroccans living abroad, even though these transfers, vital for the national economy, reached 117.7 billion dirhams in 2024.