Maldives enacts strict rules for foreign currency exchange; limits to Maldivians
The Maldives Monetary Authority (MMA) on Tuesday introduced new foreign exchange regulations, replacing a 37-year-old rule.
The newly enacted Money Exchange Business Regulations require the establishment of a special company to conduct foreign exchange transactions.
Under the new rules, two types of licenses will be issued:
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Tier-1: A license to trade in foreign exchange.
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Tier-2: A foreign currency-only sales trading license.
According to the regulations, businesses registered under the Tourism Act are permitted to purchase foreign currency from tourists without a license.
For Tier-1 licenses, the following conditions apply:
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All employees involved must Maldivians.
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A maximum of MVR 50,000 or its equivalent in cash can be transacted per day with a single customer.
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An electronic system must be implemented to monitor all foreign exchange transactions.
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The license is valid for five years.
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The application fee is MVR 20,000, with an annual fee of MVR 24,000.
Tier-2 licenses will be granted only to companies licensed to operate tourist resorts. The guidelines for Tier-2 license holders are as follows:
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The license is valid for the duration of the resort's operating permit.
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Foreign exchange transactions must be conducted with either a bank or a Tier-1 licensee.
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A receipt must be provided to customers after foreign currency sales.
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The application fee for this license is $1,300, with an annual fee of $1,800.
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A security deposit of $50,000 is required from each licensee.
Existing license holders must comply with the new regulations and reapply for their licenses. The regulations allow businesses to continue operating under their current licenses until the MMA makes a decision on their applications.
