A new directive from the Directorate-General for Financial Stability, Financial Services and Capital Markets Union (FISMA), designed to tighten banking rules in Europe, is proving demanding for foreign banks. Although primarily targeting British banks, it also imposes constraints on Moroccan banking establishments operating within the European Union, threatening the fluidity of financial transfers from Moroccans living abroad (MRE).
The legislation developed by FISMA aims to strengthen banking regulation in order to protect European financial markets from potential risks linked to non-EU banks. In a context marked by the repercussions of Brexit and a desire to limit the influence of non-European banks, this directive introduces strict requirements in terms of transparency, solvency and liquidity. Moroccan banks operating in the EU therefore find themselves faced with new compliance obligations which, in addition to increasing their costs, limit their competitiveness on the European market.
The impacts for Moroccan banks are multiple. In addition to increased costs to meet new standards, these establishments risk seeing their investment and growth capacity in Europe slowed down. Financial transfer operations, vital for MREs, will be particularly affected. In 2023, MRE transfers reached a record level, playing an essential role in the Moroccan economy by supporting the balance of payments and the financing of local projects. With this new directive, the procedures for these transfers could become more costly and longer, which could encourage expatriates to explore less restrictive alternatives.
To adapt to this legislation and mitigate its impacts, several solutions are emerging. First, Moroccan banks could invest in the digitalization of their compliance processes. This digital transformation would enable more efficient management of new regulatory obligations, thus reducing costs and facilitating real-time compliance with imposed standards. In addition, it would allow them to remain competitive with European banking institutions by limiting the administrative burden linked to cross-border operations.
Furthermore, strategic partnerships with European banks are mentioned. By joining forces with local institutions, Moroccan banks could benefit from sharing regulatory skills and resources, which would ease the burden linked to the new requirements. Such partnerships would also offer a better understanding of the specificities of the European market, thus strengthening their capacity to adapt.
Regarding MRE transfers, financial sector experts suggest the integration of fintech solutions specialized in international transfer. These fintech companies offer fast and cost-effective transfer options, ensuring compliance with European standards without compromising the fluidity of services for MREs. The development of such fintech solutions could thus limit transfer costs while guaranteeing an efficient service for Moroccans abroad.
Another option considered is the development of bilateral agreements between Morocco and the European Union, with the aim of negotiating relief for Moroccan financial institutions. Such agreements could allow mutual recognition of certain regulatory standards, thus facilitating the integration of Moroccan banks into the EU while maintaining a certain operational flexibility.
