BML slams split TTs for same supplier; such requests to be treated as a single transaction

Bank of Maldives (BML), citing that some businesses have been submitting separate Telegraphic Transfer (TT) requests to the same supplier in violation of established policies, states such requests will be treated as a single transaction when allocating US dollars.

Speaking at a press conference held on Tuesday to address concerns from the public and the business community, BML’s CEO Mohamed Shareef emphasized that no changes have been made to the bank’s existing policies on TTs. He explained that the bank continues to sell US dollars up to 50 percent of the value of a TT, with a maximum capped at USD 10,000.

"Even if a TT request for USD 50,000 is submitted, we can only provide USD 10,000. Previously, we provided up to USD 1,000. Now, we offer up to 50 percent of the value of the TT, capped at USD 10,000. For instance, if a request is made to send USD 8,000, we can provide the full 50 percent, which is USD 4,000," Shareef explained.

However, he noted that some businesses are attempting to circumvent these limits by splitting a single payment into multiple TT requests, which he stressed was wrong.

"We can identify when one party sends multiple TTs to the same supplier, whether on the same day or on consecutive days, clearly indicating that the transaction has been split," he said.

Shareef further explained that in such cases, the bank informs businesses that if US dollars have already been issued for one of those TTs, the remaining split requests will be treated as processed under the same allocation.

"Therefore, we cannot sell additional dollars for those split TTs on the same day. While a TT can technically be divided into multiple parts, doing so creates significant issues," Shareef added.

Shareef pointed out that, among thousands of businesses, only around fifty are engaging in this practice of splitting TTs. He warned that fulfilling each split request would enable certain parties to obtain an unfair share of foreign currency, disadvantaging businesses that comply with the regulations.

He further emphasized that BML has a responsibility to monitor transactions that appear to be divided into multiple parts, not only for TTs but for other types of transactions as well.

"From our regulatory perspective, it remains a single TT. Regardless of how many parts it is split into, we treat it as one transaction. If we are to act responsibly, this must be the approach. After all, if we were to provide dollars for every split request from a single business, the purpose of having a cap would be defeated," Shareef questioned.

He concluded by stating that the bank continues to facilitate TT transactions for all businesses—including small and medium enterprises and importers—provided they comply with international financial standards and regulations. He assured that the service remains available for all legitimate purposes without exception, urging businesses to use these services responsibly.