Morocco is actively seeking alternatives to protect the vital flow of remittances from its diaspora, following a European banking directive that could restrict the operations of its banks across the EU.
With transfers from Moroccans living abroad (MRE) exceeding $11 billion annually—around 7% of national GDP—the stakes for the Kingdom are high.
The regulation, adopted by the European Parliament in June 2024, limits the activities of non-European banks within EU borders. Moroccan subsidiaries in France, Spain, and Belgium handle a substantial portion of these remittances.
With the directive set to be transposed into national laws in January 2026 and enforced fully by 2027, Moroccan authorities are moving quickly to anticipate potential disruptions.
Digitalization is emerging as a primary response. Moroccan officials aim to expand secure online platforms to enable direct transfers from expatriates to recipients in Morocco.
Inspired by African fintech successes such as M-Pesa, Flutterwave, and Wave, Rabat plans to bolster domestic digital transfer tools, offering faster, cost-efficient alternatives to traditional banking channels.
Another approach under consideration is dual banking, which allows migrants to hold accounts in both their host countries and Morocco. This system facilitates secure transfers while building loyalty among the diaspora.
Though some European analysts warn of potential capital flight risks, Moroccan authorities view dual banking as a practical way to maintain funds flow even if EU restrictions limit certain subsidiaries.
Beyond Europe, Morocco is exploring Pan-African corridors.
Platforms like the Pan-African Payment and Settlement System (PAPSS), supported by the African Export-Import Bank, enable cross-border transactions in local currencies without reliance on dollars or euros. By strengthening connections to these networks, Morocco can diversify its transfer channels and reduce dependence on European financial infrastructure, while advancing African financial sovereignty.
While none of these measures yet fully replace the role of Moroccan banks in Europe, the Kingdom is positioning itself to cushion the impact of restrictive regulations.
Officials see this as an opportunity to develop competitive digital services, reinforce ties with the diaspora, and integrate more deeply into continental financial networks, turning regulatory challenges into a long-term strategic advantage.
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