Bank clarifies TT issuance rules and limits
He said the bank’s measures are intended to allocate foreign currency in proportion to business activity.
The Bank of Maldives (BML) on Tuesday stated that it will not reduce the amount of dollars issued through telegraphic transfers (TTs).
The bank issued a response to claims in media and social media that businesses are receiving insufficient TTs. Speaking at a press conference at the bank’s headquarters, Chief Executive Officer Mohamed Shareef said some businesses submit TT requests in amounts that do not align with their income or scale.
He said the bank’s measures are intended to allocate foreign currency in proportion to business activity. He gave an example in which a transaction of $100,000 would require a corresponding contribution, subject to a cap, with the amount distributed across multiple transactions.
Shareef said that when multiple TTs are processed, the same proportional requirement applies to each transfer. He confirmed that the rules governing TT issuance will remain in place and that the overall volume of TTs will not be reduced.
He added that some businesses submit requests that exceed their recorded turnover. According to him, a business sending between $100,000 and $200,000 per month must demonstrate equivalent income, and the bank has a responsibility to verify this.
Shareef also raised concerns about foreign currency entering the country as inward remittances and being diverted to informal markets. He said the bank monitors transaction volumes and compliance with set standards.
He noted that repeated payments to a single supplier through multiple TTs are under review. He said a single transfer could be used instead of multiple transactions.
Shareef said cases of unlawful profit-making have been identified and that action has been taken.
The bank also released data on TT transactions for the year. In the first quarter, total TT sales reached $106.2 million, with a monthly average of $35.4 million. As of yesterday this month, TT sales stood at $27 million, covering 7,200 transactions. On Monday and Tuesday, $2 million was issued through 615 TTs.
In comparison, the average monthly TT sales last year were $14.6 million.
Shareef said TTs are issued across business categories. He stated that businesses permitted under international regulations are eligible to receive TTs, including those importing goods for services.
