Morocco Seeks Compromise with EU on Banking Data Exchange Treaty

The application of this treaty would have penalized Moroccans residing abroad (MREs) who represent nearly 40% of term deposits in the kingdom. Fortunately, the Moroccan Parliament has rejected the ratification of this agreement which aims to fight tax evasion. Rabat is currently negotiating with the EU in order to find an "arrangement" that suits all parties.

Morocco is diplomatically active to ensure that these negotiations with Brussels are successful, the objective being to avoid at all costs being placed on the blacklist of tax havens, which would imply in particular the loss of several EU financing programs. In this context, the Minister of the Budget plans to exchange with the OECD countries with a view to revising the provisions of this agreement. According to Les Inspirations Eco, a multidisciplinary team is conducting these negotiations with Brussels.

Under the OECD/G20 treaty, the Moroccan tax administration could receive, without requesting it, a report on the assets of MREs in a State party to the agreement. For its part, Morocco should communicate data on the financial assets of MREs to the countries that have requested it. The most targeted institutions are banks, savings management companies, UCITS, insurance companies, companies and their beneficial owners.

Thus, a bank abroad suspecting an MRE of having an asset abroad, has the possibility of transmitting his personal information and banking data to his country of origin, and therefore to Morocco. This includes the name and first name, passport number and contact details of the holder, account number, account balances, interest received, proceeds from the sale of securities, etc.