Transfers of Moroccans Residing Abroad (MRE): the new European law that is shaking Moroccan banks

Moroccan banks are holding their breath. European Directive No. 2024/1619, which is about to come into force, imposes stricter rules on foreign bank branches operating in the EU. Brussels’ objective is to harmonize financial supervision, but the collateral effect for Morocco could be heavy.

The stakes are colossal. Transfers from Moroccans living abroad (MRE) represent a real breath of fresh air for the national economy, weighing nearly 7.7% of GDP. In 2024, the generosity of the diaspora has again broken records, supporting thousands of families and replenishing the Kingdom’s foreign exchange reserves.

Faced with this tightening of regulations, Bank Al-Maghrib and the government fear disruptions. The main fear? That the new compliance requirements will slow down the fluidity of these essential financial flows.

Threat to costs, not to flows

However, some experts call for nuance. For economist Driss Effina, the prevailing alarmism is exaggerated. He specifies that the actual operational impact will not be felt until 2027, leaving room for maneuver. The directive does not specifically target Morocco and does not automatically impose the costly transformation of branches into subsidiaries, unless there is a proven systemic risk.

The real danger lies elsewhere. If Moroccan banks have to spend fortunes to bring themselves up to European standards, they risk passing these costs on to customers. A rise in transfer fees or a lengthening of deadlines could then occur.

The ultimate risk is therefore not the halt of transfers, but a change of channel. If traditional banks become too expensive or too slow, the diaspora could massively turn to Fintechs and digital payment solutions, leaving the traditional branches on the sidelines.