The Maldives Monetary Authority (MMA) has introduced new regulations under the Foreign Exchange Act, mandating certain businesses to register with the central bank. This marks a significant step in aligning foreign exchange operations with updated legal frameworks as the Act came into effect on 1 January 2025.
Key provisions target businesses operating in the tourism sector and entities receiving substantial foreign currency inflows. Tourism service providers, including resorts, hotels, guesthouses, and operators catering to tourists, are required to register with the MMA by 13 January if they have not already done so under previous regulations. New tourism-related businesses must complete registration within 30 days of commencing operations.
Additionally, any business outside the financial sector that earns at least USD 15 million annually from goods or services is also required to register. These high-earning entities, referred to as “Category C,” have until 31 January of the following year to comply.
The registration process must be completed through the MMA’s Foreign Exchange Portal, which facilitates documentation submission and ensures compliance. Businesses are required to appoint a primary and alternate responsible person to manage communication and reporting obligations with the MMA.
The new regulations also outline foreign exchange requirements for tourism establishments. Category A establishments, such as resorts, now have the option to either exchange USD 500 per tourist or 20% of their revenue into Maldivian Rufiyaa. Smaller establishments in Category B, including guesthouses and liveaboard operators, must exchange USD 25 per tourist or 20% of their foreign exchange earnings. Similar provisions apply to non-financial businesses receiving over USD 15 million annually.
While registration is primarily voluntary, the MMA retains the authority to enforce compliance. Under Section 8 of the regulation, businesses that fail to register despite meeting the criteria may be directed to do so by the MMA. If they remain non-compliant, further measures can be taken as stipulated in the Act.
The MMA has acknowledged the urgency of implementing these regulations, especially given the approaching deadlines. While some aspects, such as clarifying how businesses should calculate the USD 15 million threshold, require further discussion, the MMA plans to issue guidelines before 2 February to address outstanding concerns.
These regulations aim to improve oversight of foreign exchange operations in key sectors, ensuring compliance while streamlining processes for businesses operating in the Maldives. As the registration deadlines approach, businesses are urged to ensure timely compliance to avoid penalties and disruptions to their operations.
