- The MMA publicly named Rahaa Resort and South Palm Resort Maldives for completely failing to exchange foreign currency under the Foreign Exchange Act.
- Among 183 registered resorts, resort conversion compliance averaged 78.55 per cent, but weakened in early 2026, falling to 57.46 per cent in March.
- Category B establishments showed wider gaps, with 37.60 per cent recording no conversion compliance and sales reporting declining to 41 per cent by June 2026.
The Maldives Monetary Authority (MMA) has named Rahaa Resort and South Palm Resort Maldives as resorts that it says completely failed to exchange foreign currency under the Foreign Exchange Act, as the central bank steps up enforcement of the mandatory conversion framework.
Rahaa Resort, located in Laamu Atoll, is operated by MO Hotels and Resorts, while South Palm Resort Maldives is located in Addu Atoll.
The MMA called on all businesses covered by the Act to conduct their foreign currency transactions in accordance with the law and its accompanying regulations. It also announced a final opportunity for entities that have not registered with the central bank to complete their registration.
An accompanying compliance report shows that adherence to the conversion requirements varies considerably across resorts, smaller tourism establishments and businesses earning large amounts of foreign currency.
Among 183 registered resorts, 77.60 per cent were classified as between 50 and 100 per cent compliant. Another 19.67 per cent recorded compliance between one and 49 per cent, while 2.73 per cent recorded no compliance.
The MMA statement presented the figures in rounded terms, saying 78 per cent of resorts had properly conducted their dollar exchange processes while 20 per cent had not exchanged the required amount adequately.
The report found that resort conversion compliance, measured by comparing the total amount converted with the amount required, averaged 78.55 per cent between October 2024 and April 2026.
The rate weakened during the opening months of 2026, declining from 74.72 per cent in January to 67.73 per cent in February and 57.46 per cent in March. It recovered slightly to 62.53 per cent in April.
Sales reporting among resorts remained comparatively high, averaging 96.87 per cent from January 2025 to June 2026. However, monthly submissions fell to 160 resorts in June, reducing the reporting rate to 87 per cent.
The MMA said several resorts with outstanding obligations had requested concessions for various reasons. The authority maintained that these businesses remain legally required to comply with the existing framework.
The report said first and final notices had been issued to resorts with outstanding obligations. Action had been taken in relation to two entities, while action involving other non-compliant entities was awaiting clarification of relevant compliance matters.
Wider gaps were recorded under Category B, which covers guesthouses, tourist hotels, liveaboards and home stay tourist guesthouses.
Of the 625 registered establishments, 47.52 per cent were classified as between 50 and 100 per cent compliant. Another 14.88 per cent were between one and 49 per cent compliant, while 37.60 per cent recorded no conversion compliance.
Sales reporting across Category B also declined from 72 per cent in January 2025 to 41 per cent in June 2026. The report found that 9.6 per cent of registered establishments had never submitted a sales report.
As these establishments are generally medium-sized businesses, the MMA said it is providing further opportunities within the law and conducting awareness activities to improve compliance. Reminder calls and emails resulted in 52 additional registrations in August.
Category C covers businesses with annual revenue exceeding USD 15 million. Among the 21 registered businesses, 38.10 per cent were between 50 and 100 per cent compliant, while 33.33 per cent were between one and 49 per cent compliant. The remaining 28.57 per cent recorded no conversion compliance.
Compliance by value was lowest in Category C, averaging 26.30 per cent from January 2025 to April 2026. Businesses in the category met only 17.12 per cent of their mandatory conversion requirement in April.
The MMA said Category C businesses had also sought concessions. However, changing their requirements would require amendments to the Foreign Exchange Act, and a legislative proposal has been submitted.
Under the existing framework, the MMA retains 90 per cent of the dollars exchanged through the mandatory process. The authority then releases 30 per cent of that amount to banks, with priority given to Maldivian-owned banks.
The money released to banks is intended to finance public foreign currency requirements, food imports and support for small and medium-sized businesses. The central bank said the foreign currency it retains is also used to finance imports of fuel, gas, medicine and other essential commodities.
