Police ask public to report unlicensed foreign currency trading

Maldives Police Service has asked the public to report individuals and businesses suspected of trading foreign currency without a money exchange licence issued by the Maldives Monetary Authority (MMA).

Police said on Tuesday night that information on unlicensed foreign exchange activities can be submitted to a task force established to investigate such cases.

Information can be sent by SMS, Viber, WhatsApp or Telegram to 9388733.

Police said the identity and personal information of those providing information through the number would be kept confidential.

“We assure that the identity and personal details of anyone sharing information via this number will remain fully confidential and protected. Furthermore, informants will not be required to participate in any investigative or legal procedures,” police said.

The appeal comes as authorities increase enforcement against foreign currency trading outside channels authorised by the MMA.

Police on Tuesday froze bank accounts belonging to Naid Investment Private Limited and searched its office at M. Dhanbu Goalhi as part of an investigation into alleged foreign exchange trading without a licence.

Naid Investment operates businesses including Furaveri Island Resort & Spa and Page Hardware. Police said accounts used by the company for foreign currency transactions had been frozen while the investigation continues.

Authorities have also detained six foreign nationals — four Bangladeshis and two Indians — on suspicion of conducting unlicensed foreign currency trading.

Police said bank accounts linked to the six suspects recorded transactions exceeding USD 1.6 million and MVR 54 million over a three-year period.

The MMA has also previously taken action against licensed money exchange businesses for breaches of foreign exchange regulations, including revoking licences.

Under the Foreign Exchange Act, businesses conducting foreign currency exchange are required to obtain a licence from the MMA.

Amendments to the law that came into force on Tuesday also introduced penalties for selling or attempting to sell foreign currency outside exchange rates or bands determined by the MMA. Such violations can result in fines ranging from MVR 25,000 to MVR 1 million.

The enforcement measures come as the government and the MMA seek to increase the amount of foreign currency entering the banking system and reduce transactions conducted through the parallel market.