Businesses slapped with new visa condition to open BML expat account
There is concern that the recent inclusion of a 12-month work permit as a condition for opening an expat account at BML will cause financial stress.
Businesses have started raising concerns over Bank of Maldives' (BML) change in rules requiring migrant workers to have a work permit that they have been paid for 12 months to open their accounts.
It is legally mandatory for companies to deposit salaries of migrant workers in a bank account.
There is concern that the recent inclusion of a 12-month work permit as a condition for opening an expat account at BML will cause financial stress to several companies.
An official from a major company, who spoke to Atoll Times on condition of anonymity, said he came to know about the new condition when the company went to the bank last month to open the accounts of new migrant workers.
According to him, the company also pays work permit fees for new migrants and permanent contract workers every three months.
"The probation period of the new employees is three months. Once that deadline is over, some employees may have to be sent off if they are not good at work. So, in cases where work permit fee is paid for one year, the remaining nine months of fees are lost to the company," he said.
"Even permanent employees, for example, leave their jobs on their own. In a situation like this [if you pay work permit fee for a year], it will be a huge loss for the company."
With the change, businesses say it is no longer possible for migrant workers to open an account at the country's biggest bank.
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Work permit fee of MVR 350 per person per month has to be paid
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A company with 300 migrant workers will have to pay MVR 1.2 million in one go as annual work permit fee for all of them
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Companies hiring a large number of migrant workers will face cash flow constraints
There was no immediate comment from the bank. According to the bank's website, foreigners on work visas are required to have a work permit issued for a period of one year to open an expat account. At the time of opening of the account, at least six months should be left of that period.
The employment law does not make it mandatory for migrant workers to deposit their salaries in a particular bank. Any bank that is registered and allowed to operate in the country can be used to open an account.
Companies that spoke to Atoll Times said the change has been brought only by the bank.
