Banks, customs sign MoU to verify telegraphic transfers for imports

Commercial banks and the Maldives Customs Service on Thursday signed a memorandum of understanding (MoU) to establish a system for verifying Telegraphic Transfers (TTs) made through banks for the import and export of goods.

The agreement was signed at a ceremony held at the Maldives Monetary Authority (MMA), under which Customs and commercial banks will exchange information on trade transactions processed through the banking system.

According to the MMA, the arrangement is intended to allow authorities to cross-check funds transferred overseas through TTs against details of goods entering the Maldives.

The system will enable banks and Customs to verify whether payments made for imports correspond with shipments received in the country, providing a mechanism to identify discrepancies in trade-related transactions.

Commissioner General of Customs Fathimath Dhiyana signed the agreement on behalf of the Maldives Customs Service, while chief executives and managing directors signed on behalf of the participating commercial banks.

The MMA said its Financial Intelligence Unit (FIU) will oversee the initiative.

The measure comes amid efforts by the authorities to monitor the movement of foreign currency through the banking system.

The MMA has previously identified cases in which foreign currency was transferred overseas through local banks for the stated purpose of importing goods, but the corresponding goods did not arrive in the Maldives.

Authorities have said such transactions can be used to transfer US dollars out of the country under the guise of payments for imports.

The information-sharing mechanism is expected to allow banks, Customs and the FIU to compare banking and shipment records and identify transactions where overseas payments do not correspond with imports.