MMA orders strict compliance with Foreign Exchange Act; violators to lose licences

The Maldives Monetary Authority (MMA) has urged all parties to strictly comply with the Foreign Exchange Act, noting that foreign currency continues to be exchanged illegally by individuals and businesses operating without a licence.

MMA said that while the Foreign Exchange Act and the Regulation on Money Changing Business clearly state that foreign exchange transactions in Maldives may only be conducted with a licence issued by the Authority, some parties are still engaging in such transactions without authorisation.

The Authority advised the public not to conduct foreign exchange transactions with any dealer who does not hold an MMA licence, stressing that it is an offence under Maldivian law.

MMA further instructed banks to ensure that any foreign exchange transaction conducted with a non-bank entity is done only with a licensed money changer, and to fully comply with all laws and regulations.

The Authority recently revoked the licence of a money changer found to be conducting illegal foreign exchange transactions. Earlier, MMA had also cancelled the licence of Express Money Exchange Pvt Ltd for similar violations.

On Wednesday, police said 65 cases have been reported to the hotline established to gather information on illegal foreign exchange activities. These include 18 cases of unauthorised foreign exchange trading and four cases of illegally buying and selling dollars at inflated prices.

Police also reported receiving information on 27 foreigners allegedly involved in illegal money exchange activities, and 16 online platforms facilitating such transactions.

At a press conference on the 24th of last month, Home Minister Ali Ihusaan said that seven illegal money exchangers had been investigated, and that they had collectively converted USD 76 million on the black market over the past nine months.

The government has announced strict measures to curb the black-market dollar trade. Among them, advertising or promoting foreign exchange at prices above the official MMA rate is prohibited. It is an offence to disclose, publish or disseminate black-market rates, whether digitally or otherwise.