Assahafa.com
European countries are set to implement a new European Union (EU) law regulating foreign banks that could threaten the ability of Moroccan diaspora members to send money to their families in Morocco.
The EU’s new banking package (CRR III/CRD VI), which was registered in the Official Journal of the European Union this June, regulates foreign banks operating in Europe, including those often used by Moroccan diaspora members to transfer money to Morocco.
The new law aims to regulate Europe’s banking sector with stringent new demands on foreign banks operating in the bloc.
Bank Al-Maghrib (BAM) Governor Abdellatif Jouahri in the end of September organized a press conference to raise his concerns over the new EU banking law. He highlighted that Moroccan banks have subsidiaries in 7 European countries, which are often used by the diaspora.
Remittances from the Moroccan diaspora have grown steadily over the years, providing direly needed foreign currency Morocco needs to finance its massive fossil fuel imports that provide 90% of the country’s electricity. Even more importantly, many Moroccan families depend on regular financial contributions from their family abroad.
The World Bank estimates that remittances accounted for 8.5% of Morocco’s GDP, meaning that any disruption in this financial flow could severely impact the Kingdom’s economy.
The new banking rules have officially entered into force, yet each EU member state will have to integrate the new regulation in their own national law. This process is likely to not occur instantly, with EU countries having until January 11, 2026. Still, there is nothing to stop EU countries from introducing and approving the legislation as soon as they please.
During his September press conference, BAM governor Jouahri indicated that Moroccan authorities and Moroccan banks operating in the EU started “very close negotiations” with the European Commission, and the ministries of a variety of EU countries, including Belgium, France, Italy, the Netherlands, and Spain.
Over the next months Moroccan representatives are set to negotiate with the European Central Bank and the relevant countries, hoping that these countries will interpret the new EU directive in different ways.
How productive these negotiations will be, remains in doubt, given the rise of the far-right in many of the countries involved. With several openly Islamophobic and anti-Moroccan governments in power, it is likely that these countries would relish the damage they’d do to the Moroccan economy, even though an economic crisis in Morocco would likely push thousands more migrants towards EU borders.
For Moroccans in Europe it could be wise to closely follow the process of their parliament integrating this new regulation, and research alternative ways of transferring funds once the rule takes effect in their country of residence.
Source: cbc
