Morocco and France are moving toward a key agreement that could shield Moroccan banks operating in Europe from the full impact of a strict European Union (EU) directive – the Capital Requirements Directive VI (CRD VI) – which limits cross-border financial services from non-EU countries. According to the Governor of Bank Al-Maghrib (BAM) Abdellatif Jouahri, the deal is expected to be finalized in July.
Under the European Banking Directive CRD VI, foreign financial institutions not authorized within the EU are banned from offering services remotely to clients residing in the EU bloc. Morocco is now working to secure exemptions or accommodations that would preserve its banks’ ability to serve millions of Moroccans abroad.
“This meeting aims to preserve the intermediary role played by Moroccan banks in Europe,” Jouahri said Tuesday in Rabat, following the second quarterly meeting of BAM’s board.
The anticipated agreement with the French Treasury would mark a crucial first step. It must first receive the green light from the European Commission before Morocco can pursue similar arrangements with other key EU member states — notably Spain, Belgium, the Netherlands, and Italy.
Interministerial Task force
To facilitate this negotiation, a special task force has been formed, comprising representatives from the Ministry of Foreign Affairs, the Ministry of Economy and Finance, Bank Al-Maghrib, and major Moroccan banks.
“The objective is to allow Moroccan banks to continue serving Moroccans abroad and their relatives in the Kingdom,” Jouahri said, describing the cross-border banking service as “strategic” for Morocco’s financial stability and external accounts.
The task force has already initiated technical talks with relevant EU officials, while also holding intensive discussions with French authorities. Jouahri emphasized that these exchanges have helped clarify the matter at stake
“These exchanges have led to a better understanding of the stakes this activity represents for Morocco,” he said, pointing to its implications for the balance of payments and the broader financial ecosystem connecting Morocco to its diaspora.
Temporary setbacks
Jouahri also addressed trends in remittances from Moroccans living abroad, forecasting a modest decline in 2025. “We anticipate a recovery starting in 2026, once the regulatory adjustments are completed,” he noted.
On the monetary policy front, BAM opted to keep its benchmark interest rate steady at 2.25%, citing ongoing uncertainty and a relatively stable economic backdrop. Inflation remains moderate, non-agricultural sectors are rebounding, and market expectations are broadly anchored.
“The board will continue to monitor the impact of its recent rate cuts, especially on financing for very small, small, and medium-sized enterprises,” Jouahri concluded.
CRD VI is part of the EU’s ongoing efforts to tighten financial regulation across member
states. The directive includes provisions that restrict non-EU financial institutions from offering cross-border services to clients residing within the bloc unless they obtain local authorization. While aimed at reducing systematic risk, these rules pose challenges for countries like Morocco that rely on cross-border banking to serve their expatriates.
Morocco’s diaspora is one of the largest in Europe, with over 5 million Moroccans residing across France, Spain, Belgium, the Netherlands, and Italy. In 2024, remittances from Moroccans abroad reached a record $11.7 billion, accounting for approximately 8% of Morocco’s GDP – a vital lifeline for families, local businesses, and rural development.
