MMA opens applications for new foreign currency licence
The deadline for submitting new license applications is November 30.
Maldives Monetary Authority (MMA) on Wednesday opened the opportunity to apply for a foreign exchange trading licence under the new foreign exchange regulations.
MMA on Tuesday introduced a new regulation aimed at strengthening the legal framework of the foreign exchange market and ensuring financial sector stability.
The Regulation on Money Changing Business was gazetted and became effective on Tuesday, repealing the previous Regulations Outlining Arrangements for Money Changers enacted in 1987.
Under the new regulation, MMA will issue two types of licenses:
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Tier 1 Money Changing Licence: This license allows for the buying and selling of foreign currency and will be issued to companies established under the Companies Act
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Tier 2 Money Changing Licence: This license permits the selling of foreign currency and will be issued to companies licensed to operate tourist resorts under the Maldives Tourism Act
Entities currently conducting money changing activities under an existing license may continue operations under their current licenses until MMA reviews and decides on their application for a license under the new regulation.
However, if these entities fail to apply for a Tier 1 or Tier 2 license within two months from Tuesday, their existing licenses will be revoked.
Applications for license renewal must be submitted through MMA’s online portal.
A maximum of 50 licenses will be issued under the new regulation, and in the event of excess applications, licenses will be awarded via a draw among qualified applicants.
The deadline for submitting new license applications is November 30.
MMA on Tuesday introduced a new regulation requiring all foreign currency income generated by the tourism industry to be deposited in local banks.
As per the regulation, businesses active in the tourism industry and registered with the Maldives Inland Revenue Authority (MIRA) are required to re-register with MMA within 30 days. New registrants must also comply with this rule within the same timeframe.
Goods and service providers in the tourism sector are now required to submit details of their offerings to the MMA before the 28th of the following month.
The total foreign currency earnings must be deposited into a local bank’s foreign currency account, registered with MMA, within 87 days after the end of each month.
The regulation also specifies that transactions within the country must be conducted in Maldivian Rufiyaa, with certain exceptions. These include government-related transactions, remittances, foreign transactions, and sales to tourists, among others.
In a second regulatory change, MMA has amended the Foreign Currency Regulation, requiring tourism facilities to exchange a portion of their foreign currency earnings through local banks.
For resorts, hotels, and tourist vessels (Category A), $500 per guest must be exchanged.
