EU Proposal Could Disrupt Vital Remittances to Morocco

A new directive could force Moroccan banks to open branches in Europe, making transfers more expensive, or even impossible.

Each year, MREs send nearly $10 billion to Morocco, an essential contribution to the Kingdom’s economy. With this new directive, Europe risks jeopardizing this vital financial windfall for the Moroccan economy.

To read: Europe wants to block money transfers of Moroccans living abroad

"We are leaving, we will continue to discuss with the central banks. We started with France and Spain," said the Governor of Bank Al-Maghrib, Abdellatif Jouahri. "We continue with the European Union, so that the interests, the relay movements and the movements of the MREs are not affected by the directive or the interpretation of the directive," he specified.

The stakes are high for Morocco. In addition to the new directive, the OECD plans to strengthen the exchange of tax information, which could further complicate money transfers. MREs could then turn to alternative, less secure and more expensive solutions.