Foreign Exchange Amendment Criminalizes Dollar Sales Above Official Rate
31 އޯގަސްޓު 2026 | ހޯމަ 11:10Under the new amendments to the Foreign Exchange Act, selling US dollars at rates exceeding the official Maldives Monetary Authority (MMA) exchange rate has been criminalized, carrying heavy financial penalties. Additionally, the legislation mandates tourism businesses to exchange a specific percentage of their foreign currency earnings through local banks, with these regulatory changes set to take effect on September 1, 2026.
President signs first amendment to Foreign Exchange Act into law. | Presidents Office
President Dr. Mohamed Muizzu today ratified the First Amendment to the Foreign Exchange Act (Law No. 32/2024), criminalizing the sale, attempted sale, and advertising of US dollars at rates exceeding the official exchange rate set by the Maldives Monetary Authority (MMA). The President signed the bill into law during a special ceremony held at the President's Office this afternoon.
This is a bill passed by the People's Majlis during the 28th sitting of its second session of 2026, held on Wednesday, August 26, 2026.
Under these amendments, foreign currency exchange must be conducted at rates or within bands prescribed by the central bank, the Maldives Monetary Authority (MMA). Furthermore, the regulations mandate that money exchange businesses may only operate after obtaining a formal license issued by the Authority.
The bill introduces revisions to the mandatory foreign currency exchange requirements for businesses earning income in US dollars. Under these changes, the threshold for mandatory currency conversion for dollar-earning businesses—excluding those in the tourism sector—has been increased from $15 million to $25 million.
Under the revised regulations, Category A tourism establishments are now required to exchange 40 percent of their monthly gross sales into local currency, effectively removing the previous option of exchanging a fixed rate of $500 per tourist. For Category B establishments, the mandatory exchange rate has been set at either $25 per tourist or 20 percent of their gross sales. Non-tourism businesses generating more than $25 million in annual foreign currency revenue are also mandated to exchange 40 percent of their gross sales, though a lower rate of 7 percent applies to businesses that are 100 percent Maldivian-owned. The regulations further stipulate that these funds must be deposited into a foreign currency account at a bank licensed by the Maldives Monetary Authority (MMA) and the exchange process must be completed by the 28th day of the following month.
Under this bill, selling, attempting to sell, or advertising US dollars at a rate higher than the official exchange rate set by the Maldives Monetary Authority (MMA) has been established as a criminal offense. Individuals found guilty of these offenses face fines ranging from MVR 25,000 to MVR 1,000,000, while legal entities may be fined between MVR 100,000 and MVR 5,000,000.
This amendment is set to take effect on September 1, 2026.
