Maldivian authorities are preparing to monitor bank account transactions as part of wider efforts to identify illegal business activities involving expatriates, Economic Minister Mohamed Saeed has said.
Speaking at a press briefing on Tuesday, Minister Saeed said authorities were working to trace financial links connected to businesses suspected of being operated illegally by expatriates. The move follows discussions with the Businesses Council, where some business owners proposed that authorities examine money flows through Maldives Inland Revenue Authority records and bank accounts.
Minister Saeed said authorities expect to determine soon whether money linked to such businesses is being circulated through expatriate bank accounts, or whether there are identifiable financial links within the wider business network.
The issue has become more complex because many businesses reported as expatriate-run are formally registered under Maldivian citizens. According to Minister Saeed, authorities often find that the registered Maldivian owner has either rented the business to an expatriate or placed an expatriate at the counter, leading residents to believe the business is operated by an expatriate.
He said authorities continue to check whether expatriates involved in such establishments have the required documentation, and take action where violations are found.
The Economic Ministry launched a multi-agency crackdown on illegal expatriate-run businesses in November last year. Since then, authorities have received 409 reports and inspected 242 establishments.
Of the establishments inspected, 102 were temporarily closed. This included 57 businesses identified as illegal operations and 45 establishments in the spa and salon category. Another 62 establishments were found to be operating within the law and were allowed to reopen.
The planned monitoring of bank transactions signals a shift towards following financial activity rather than relying only on site inspections and registration records. It may allow authorities to better distinguish between businesses that are legally owned and operated by Maldivians and those where control or proceeds may be linked to unlawful arrangements involving expatriates.
