The Maldives Monetary Authority (MMA) has officially gazetted a new regulation governing money exchange businesses, effectively nullifying the previous Monetary Regulation established on March 1, 1987. This regulatory update introduces a comprehensive framework aimed at strengthening the operations and oversight of money-changing businesses in the Maldives.
One of the significant changes is the introduction of a two-tier licensing system. Tier 1 licenses are designated for foreign currency trading and will be exclusively issued to companies established under the Companies Act, with full Maldivian ownership required. These licenses will be valid for a period of five years, and notably, all employees involved in these businesses must also be Maldivian citizens. The application fee for obtaining a Tier 1 license is set at MVR 20,000, with an annual fee of MVR 24,000. Furthermore, the maximum cash transaction allowed per customer per day is capped at MVR 50,000 or its equivalent in foreign currency.
In contrast, Tier 2 licenses will be granted to companies licensed under the Tourism Act that operate tourist resorts. The application fee for a Tier 2 license is USD 1,300, with an annual fee of USD 1,800. Notably, Tier 2 entities are required to conduct foreign currency exchanges only through a bank or a Tier 1 entity. Each licensee under this category must also place a security deposit of USD 50,000.
The MMA has stated that the new regulations are designed to enhance the operational standards of money-changing businesses while reinforcing supervisory measures to ensure compliance. Currently, there are 221 registered money changers with the MMA, and businesses licensed under the previous regulation are permitted to apply for new licenses while continuing operations under their existing licenses until the MMA reaches a decision.
It is important to note that applications for the new licenses must be submitted within two months from the gazetting of the regulations. After this period, licenses of non-compliant businesses will be deemed void.
