Foreign Exchange Company’s License Suspended and Fined MVR 500,000

MS Finance Currency Exchange Private Limited has been fined MVR 500,000 and had its license suspended for violating regulations governing the money exchange business.

The Maldives Monetary Authority (MMA) has confirmed that this measure was implemented on the 18th of this month.

In a press statement regarding the enforcement actions taken against the company, the Maldives Monetary Authority (MMA) announced that MS Finance Currency Exchange Private Limited has been fined MVR 500,000 as a supervisory measure.

Furthermore, the statement noted that the money changer license issued to the company has also been suspended.

In a statement, the Maldives Monetary Authority (MMA) urged all parties to comply with laws and regulations governing foreign exchange transactions. The central bank further cautioned that it will continue to take legal action against those found in violation of these regulations.

In response to the decline in the Maldives' usable official reserves, the government has introduced significant amendments to foreign exchange regulations aimed at increasing foreign currency inflows and stabilizing the market.

President Dr. Mohamed Muizzu's administration has introduced amendments to the foreign exchange regulations, which came into effect on October 1.

Under the new regulations, resorts, integrated resorts, and private islands categorized under 'Category A' are now required to convert 40 percent of their monthly foreign currency earnings through banks, a significant increase from the previous 20 percent requirement. Additionally, the threshold for high-revenue businesses in non-tourism sectors has been raised from $15 million to $25 million per year. While these foreign-owned entities are also mandated to convert 40 percent of their earnings, the government has introduced concessions for wholly Maldivian-owned companies. To ease their financial burden, these local firms are only required to convert 7 percent of their total foreign currency revenue.

Furthermore, guesthouses, hotels, and safari vessels categorized under 'Category B' are now required to exchange either $25 per tourist or 20 percent of their monthly revenue through the Maldivian banking system.

Under these new measures introduced to curb the black market, it is strictly prohibited for any party to advertise foreign currency exchange at rates higher than the official rate or to publicly disseminate black market exchange rates. Stringent penalties have been established for violations of these regulations, with individuals facing fines of up to MVR 500,000 and business entities subject to fines reaching MVR 5,000,000.