Parliament has approved a legislative amendment to the National Payment System Act, introducing extensive reforms aimed at tightening financial oversight and combating unauthorised transactions.
The government’s amendment, passed with the support of 63 lawmakers on Monday, grants the Maldives Monetary Authority (MMA) new statutory powers to establish companies, partnerships, or joint ventures to operate payment systems and provide payment services. Previously, such functions fell outside the central bank’s mandate under existing legislation.
The reforms also introduce new criminal provisions to curb financial irregularities. Individuals and entities, other than licensed banks or those formally exempted by the MMA, will be prohibited from offering or soliciting payment services without approval from the authority. Even exempted parties will face restrictions, with the law barring them from soliciting payment services from foreign entities.
Violations of these provisions could carry monetary penalties ranging from MVR 100,000 to MVR 1,000,000.
To ensure clarity, the bill defines “payment solicitation” broadly, covering activities such as promoting or advertising payment services, proposing contracts, or inviting public participation in payment arrangements.
Once ratified by the President, the amendment will take immediate effect, significantly expanding the MMA’s regulatory perimeter and strengthening its capacity to oversee the financial sector.
