Govt gazettes forex registration regulation
The registration process is mandatory and must be done through the Foreign Exchange Portal provided by the MMA.
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Maldives Monetary Authority (MMA) on Thursday issued the new registration regulations under the Foreign Exchange Act, requiring certain businesses to register with the central bank.
The regulation is in line with the Foreign Exchange Act that came into force on January 1.
The new regulation mandates that providers in the tourism sector, as well as other businesses that meet certain financial criteria, register with the MMA. Here’s a breakdown of the key requirements:
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Tourism Sector Providers: All businesses providing goods and services in the tourism sector must register with the MMA. This includes resorts, hotels, guesthouses, and businesses offering services to tourists.
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Businesses receiving at least $15 million per year: Any business, excluding financial institutions, that receives a minimum of $15 million in foreign currency within a calendar year for goods and services sold or provided must also register.
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Immediate registration deadline: Businesses operating in the tourism sector that have not registered with the MMA before the Foreign Exchange Act came into effect must complete their registration before Monday, which is the deadline for initial compliance.
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New businesses: For tourism-related businesses starting operations after January 1, registration must be completed within 30 days from the date of commencement.
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Annual registration for high-earning businesses: Any business that receives at least $15 million in foreign currency within a calendar year is required to register with the MMA by January 31 of the following year.
The registration process is mandatory and must be done through the Foreign Exchange Portal provided by the MMA. The portal facilitates the submission of required documentation and ensures compliance with the new law.
The Foreign Exchange Act introduces adjustments in how fees are charged within the tourism sector:
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Category A establishments (resorts) now have the option to exchange $500 per tourist, a policy that was previously mandatory but is now optional under the new law, or exchange 20% of their revenue into Maldivian Rufiyaa.
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Category B establishments (guesthouses, liveaboard operators, and smaller hotels) must exchange either $25 per tourist or 20% of their foreign exchange earnings.
Apart from the tourism sector, any non-financial institutions receiving at least $15 million in foreign currency annually for services or goods must exchange 20% of their foreign exchange earnings.
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