98 parties requested for money exchange license; 198 licenses cancelled

The Maldives Monetary Authority (MMA) has reported that a total of 98 parties have submitted for money exchange license under the newly enacted Foreign Exchange Regulation, while 163 of the previously issued licenses have been cancelled.

Under the “Foreign Exchange Regulation” two tiers of licenses are issued, which include ‘Tier 1’ and ‘Tier 2’ money exchanging licences.

• Tier 1 money exchanging license: buying and selling foreign currency
• Tier 2 money exchange license: selling foreign currency

MMA opened applications to acquire licenses under the new regulation earlier on October 3^rd.

With 98 parties applying for the license before the deadline under the new regulation, 49 of them are new businesses. The remaining 49 parties are among the 212 entities to whom MMA had previously issued licenses.

From the total applicants, 79 had sought Tier 1 licenses while 19 parties have sought Tier 2 licenses.

Among the licenses that were cancelled, 99 were those from Tier 1 and 64 others were from Tier 2.

MMA further confirms that existing money exchangers with previously issued licenses can continue their exchange transactions until a final decision is made regarding their applications for the new licenses.

The central bank added it is working on issuing licenses to the applicants at the earliest possible date, but said it cannot specify an exact date. MMA further said that applicants were implored to meet specific criteria in acquiring the new license, which include:

• Should be exclusively a foreign currency exchanging business
• Must provide audited financial report
• Must designate a compliance officer answerable to MMA
• Must employ only locals

The new licenses will be issued not exceeding 50 entities, and if the applicants with eligibility exceed beyond this, the finalist would be selected via a draw.

Under the new regulation, Tier 2 licenses will be issued to businesses permitted or licensed with operating tourist resorts under the Tourism Act. The duration of the license would be same as the period for which the business is licensed to operate the tourist resort. These businesses must make exchange transactions exclusively with local banks or with Tier 1 license holders.