MMA receives 49 new applications under revised forex rules
This brings the total number of applications, including existing licensees, to 98.
Maldives Monetary Authority (MMA) has received 49 new applications for foreign exchange buying and selling licenses under the recently enacted foreign exchange buying and selling rules.
This brings the total number of applications, including existing licensees, to 98.
Two categories of licenses are issued under the money changing business regulations:
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Tier-1 license: Allows trading in foreign exchange.
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Tier-2 license: Permits foreign currency sales only to specific entities.
Speaking at a press conference, Aishath Asna Hamdi, Assistant Executive Director of MMA’s Financial and Consumer Services Division, explained the key updates, including the introduction of the two-tier licensing system. Businesses currently holding licenses must reapply under the new regulations.
Tier-1 Licenses:
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44 new applications.
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35 applications from existing license holders.
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- Total: 79 applications.
Tier-2 licenses:
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5 new applications.
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14 applications from existing license holders.
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Total: 19 applications.
The MMA reported that licenses for 163 foreign exchange dealers were revoked for failing to apply by the deadline:
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99 from commercial businesses.
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64 from tourist resorts.
Tier-1 license requirements:
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All employees involved in transactions must be Maldivian.
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A daily cash transaction limit of MVR 50,000 or its equivalent per customer.
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An electronic system must be implemented to monitor transactions.
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Validity: 5 years.
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Application fee: MVR 20,000.
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Annual fee: MVR 24,000.
Tier-2 license requirements:
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Only issued to businesses licensed to operate tourist resorts.
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Transactions allowed only with banks or Tier-1 licensees.
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Receipts must be provided for all foreign currency sales.
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License term matches the resort operating permit.
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Application fee: USD 1,300.
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Annual fee: USD 1,800.
Additionally, all licensees are required to maintain a security deposit of USD 50,000.
The MMA is evaluating the validity of submitted applications and documents. No specific timeline has been announced for issuing the new licenses. Existing businesses will continue operating under their current licenses until the applications are processed.
