Six expats detained over large-scale foreign currency exchange network

The Maldives Police Service and Maldives Immigration have apprehended six expatriates allegedly involved in illegal foreign currency exchange network, with a total of MVR 54 million and USD 1.6 million reportedly circulated through their personal bank accounts over the past three years.

In a statement issued on Monday, the Police confirmed that a specialized task force established to identify individuals engaged in unauthorized foreign currency trading had taken the six suspects into Immigration custody.

The investigation found that the individuals had circulated MVR 54.4 million and USD 1.63 million through their accounts over the past three years. Authorities determined that the suspects were operating a foreign currency exchange network beyond the scope of activities permitted under their respective employment categories.

The apprehended individuals are:

• Mohammed Rahul Amin, Bangladesh (Occupation: Accountant)
• Masudh Mia, Bangladesh (Occupation: Waiter)
• MD Fareed Uddin, Bangladesh (Occupation: Driver)
• Dulkarnai Imran Khan, India (Occupation: Engineer)
• Mohamed Asath Kalandar Hussain, India (Occupation: Salesperson)
• Mohammed Mahamudur Hassan, Bangladesh (Occupation: Cleaner)

The Police stated that analysis of data gathered by the task force has identified a pattern in which bank accounts registered under the names of private individuals, as well as businesses registered under local names, are being handed over to expatriates to facilitate the movement of illicit funds generated through illegal activities.

The authorities warned that allowing another person to use one’s bank account for unlawful transactions could result in criminal prosecution as an accomplice. The Police therefore urged the public to ensure that their banking facilities are not used by others for illegal purposes, while reaffirming their commitment to taking legal action against individuals involved in such activities.

During a press briefing on the July 24th, Home Minister Ali Ihusaan revealed that an investigation into seven entities involved in unauthorized foreign currency exchange had found that USD 76 million had been traded on the black market over the preceding nine months.

The current administration has pledged to introduce stringent measures to curb the dollar black market. These measures include prohibiting the advertisement or promotion of foreign currency exchange at rates exceeding those established by the Maldives Monetary Authority (MMA). The disclosure, publication, or dissemination of black market exchange rates through digital platforms or other means has also been criminalized.

Under the new regulations, individuals found in violation may face fines ranging from MVR 25,000 to MVR 500,000. Legal entities or registered businesses found publishing such information may be fined between MVR 100,000 and MVR 5 million.

President Dr. Mohamed Muizzu ratified the bill introducing these legislative changes earlier today, following its passage by Parliament, where the ruling PNC holds a super-majority.