Police files investigation into BML’s ‘financial coup’ alleged by Pres. Muizzu

Maldives Police Service has filed its investigation into an alleged ‘financial coup’ connected to the Bank of Maldives’ (BML) decision to suspend dollar allowances on Maldivian Rufiyaa (MVR) cards, stating that no criminal offenses were identified.

In a written response to an inquiry submitted through the ‘Maholi’ portal under the Right to Information Act, the Police confirmed on May 8^th that the case had been officially filed and closed.

The controversy began on August 25, 2024, when BML announced the suspension of foreign transaction allowances for MVR cards, citing a severe US dollar crunch. Two days later, on August 27, 2024, police launched an investigation amid allegations that opposition political figures were attempting to orchestrate a coup aimed at destabilizing the government.

The following day, during a gathering at the People’s National Congress (PNC) headquarters, President Dr. Mohamed Muizzu also described the incident as an attempted coup. The controversy subsequently led to the resignation of BML’s then-Chief Executive Officer.

However, in a written response, the Police Information Officer stated that after reviewing the allegations, authorities found no grounds to pursue a criminal investigation.

“This authority’s records show that the case has been closed following an assessment of the allegations surrounding the 2024 Bank of Maldives decision, as there is no basis for a criminal investigation,” the written response read.

Notably, the Police launched the investigation at their own initiation. At the time, authorities argued that the timing of a press conference held by opposition politicians, together with hundreds of social media “bot accounts” allegedly calling for public unrest and the unlawful overthrow of the government, constituted sufficient grounds to examine the possibility of a coup attempt.

During the same period, several government officials also directed accusations at BML’s senior management. On August 28, 2024, the Police reiterated that efforts were underway to identify individuals allegedly involved in the purported coup attempt.

At the height of the crisis, BML had fully suspended the USD 250 monthly allowance for MVR debit cards and reduced the credit card limit to USD 100. However, the bank reversed the decision later that same day following a directive issued by the Maldives Monetary Authority (MMA).

President Muizzu strongly criticized the bank’s initial decision: “What happened was, as [Minister Ahmed] Shiyam also noted, an attempted coup by those who orchestrated it,” the President said during a PNC rally, adding that the nature of the act was evident to any rational observer.

Since the incident, BML has appointed a new Chief Executive Officer, while several members of the previous management team have departed. The bank had initially justified the suspension by stating that maintaining the card allowances required USD 180 million annually, while it was only able to secure USD 60 million from the market.

Although the complete suspension was later withdrawn, BML subsequently revised its dollar transaction limits, significantly restricting foreign transactions on MVR cards. The changes have continued to create difficulties for the public in purchasing goods and services from abroad, prompting widespread complaints. The bank has maintained that such restrictions remain necessary, citing continued demand for foreign currency that exceeds its US Dollar inflows.