Morocco seeks progress in Europe banking rules discussions

Morocco remains optimistic about ongoing negotiations with several European countries over banking regulations that could affect Moroccan financial institutions serving citizens living abroad.

Speaking in Rabat following the second quarterly meeting of Bank Al-Maghrib’s council this year, Governor Abdellatif Jouahri said authorities expect constructive results from discussions with European partners despite the complexity of the process.

The issue stems from a European directive introduced after Brexit. The regulation has raised concerns about the ability of Moroccan banks operating in Europe to continue providing financial intermediation services to Moroccan expatriates. These services play a key role in facilitating savings, investments, and money transfers between Moroccans abroad and their home country.

In response, Moroccan authorities established a joint working group that includes the Ministry of Foreign Affairs, African Cooperation and Moroccans Abroad, Bank Al-Maghrib, the Treasury and External Finance Directorate, and the banks concerned. The group is responsible for coordinating negotiations with European counterparts.

Initial discussions with the European Commission, including officials responsible for financial services, revealed that implementation of the directive falls under the authority of individual member states. As a result, Morocco shifted its strategy toward direct engagement with national governments.

France has already participated in talks with Moroccan officials. Discussions have also involved the Netherlands and Belgium, while meetings with Spain and Italy are expected later this year.

Jouahri noted that different interpretations of the directive across Europe have added challenges to the negotiations. Moroccan authorities continue to emphasize the principle of reciprocity, pointing to the significant economic presence that several European countries maintain in Morocco.

The governor expressed confidence that a satisfactory agreement can be achieved, although he cautioned that negotiations are likely to continue throughout the year.

Despite regulatory uncertainty, remittances from Moroccans living abroad have remained stable. Bank Al-Maghrib considers this resilience evidence of the diaspora’s continued confidence in Morocco’s financial system and its strong economic ties to the country.