Committee holds confidential meeting with MATI on forex bill
The bill is expected to be passed and ratified before the parliament’s recess on December 15.
Parliament's Finance Committee on Wednesday convened a confidential meeting with the Maldives Association for Tourism Industry (MATI) to discuss the Foreign Exchange Bill.
The meeting, scheduled for 10:30 am, was kept confidential at MATI's request.
Baarah MP Ibrahim Shujau proposed the motion for confidentiality, which was seconded by Hanimaadhoo MP Abdul Ghafoor Moosa and passed unanimously.
The committee also decided to finalise its work on the Foreign Exchange Bill on Wednesday and to extend the session until 6 pm, following a motion by Fuvahmulah North MP Hamadh Abdulla.
Maldives Monetary Authority's (MMA) new foreign exchange law, which provides legal status to the regulations that came into effect in October, introduces significant changes to dollar exchange regulations:
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Resorts will have the option to exchange 20% of their revenue in dollars instead of the regulation's requirement to exchange $500 per tourist.
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Certain exemptions will apply, including: Children under 10 years of age.Guests receiving free accommodation.Guests granted special privileges by the government.
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Category B establishments, with fewer than 50 rooms, will also be entitled to mark 20% of their income in dollars. Under current foreign exchange regulations, a $25 per tourist is required to be exchanged.
The proposed bill changes the framework by requiring businesses earning more than $15 million annually in foreign currency to exchange 20% of their revenue in dollars.
The bill grants the Maldives Monetary Authority (MMA) expanded legal powers to enforce compliance. It also authorises the Maldives Inland Revenue Authority (MIRA) to conduct audits, seize documents, and impose fines on non-compliant businesses.
Penalties outlined in the bill include:
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Failure to Deposit Foreign Currency in Banks: A fine of up to 0.25% of monthly income for each day foreign currency remains undeposited.
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A fine of up to 0.25% of monthly income for each day foreign currency remains undeposited.
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Failure to Deposit the Required Amount of Foreign Currency: A fine of up to 0.5% of monthly income for each day the shortfall persists.
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A fine of up to 0.5% of monthly income for each day the shortfall persists.
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Other Violations: Fines ranging from MVR 10,000 to MVR 1 million, depending on the severity of the violation.Suspension of business permits for non-payment of fines.
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Fines ranging from MVR 10,000 to MVR 1 million, depending on the severity of the violation.
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Suspension of business permits for non-payment of fines.
The initial requirement to impose a $500 per tourist exchange faced criticism from industry stakeholders. The revised bill provides resorts with more flexibility by allowing them to mark revenue instead of imposing a flat per-tourist charge.
The bill is expected to be passed and ratified before the parliament’s recess on December 15, with existing foreign exchange regulations remaining in effect until the new provisions come into force.
