Selling dollars above MMA limits could attract MVR 1 million fine

The Parliamentary Public Accounts Committee on Wednesday approved amendments to the Foreign Exchange Bill that would impose fines of up to MVR 1 million for selling foreign currency outside exchange rates or trading bands set by the Maldives Monetary Authority (MMA).

The bill, submitted on behalf of the government by Holhudhoo MP Abdul Sattar Mohamed, seeks to amend the country's foreign exchange framework, including the removal of the option allowing resorts to exchange US$500 per tourist and replacing it with a requirement to exchange 20 per cent of monthly revenue.

Although the committee had previously completed its review and submitted the bill to parliament, lawmakers voted on Tuesday to return the legislation for further amendments.

Under the changes approved by the committee, selling or attempting to sell foreign currency at rates exceeding those permitted by the MMA would constitute an offence.

The proposed penalties range from MVR 25,000 to MVR 1 million, depending on the nature and severity of the violation.

The committee also approved provisions making it an offence to advertise or promote foreign currency transactions conducted at rates above those established by the central bank.

According to the amendment, advertising and promotion include publishing, disseminating or repeatedly sharing information through digital platforms or other publicly accessible means that publicise or encourage foreign currency transactions outside MMA limits.

Individuals found guilty of such offences could face fines ranging from MVR 25,000 to MVR 500,000.

Where the information is published by a company or registered business, the proposed penalties increase to between MVR 100,000 and MVR 5 million.

The amendments form part of broader changes to the Foreign Exchange Bill, which is currently under parliamentary review.

The legislation comes amid continued concern over foreign currency availability and the gap between official and unofficial exchange rates.

The US dollar remains the principal foreign currency used in the Maldives.

While the official exchange rate remains at MVR 15.42 per US dollar, foreign currency transactions in the parallel market have recently been reported at rates exceeding MVR 22 per dollar.

The amended bill is expected to return to parliament for further consideration following the committee's review.