The Maldives Monetary Authority (MMA) has proposed a sweeping amendment to the National Payment System Act that would impose fines ranging from MVR 100,000 to MVR 10 million on entities operating payment services without a valid licence.
The amendment, submitted by PNC MP Adam Shafeeq on behalf of the government, aims to give the central bank greater authority to regulate the country’s fast-evolving digital payments landscape. It also comes at a time when the MMA is leading key infrastructure projects such as Favara, the Maldives’ national payment system.
If passed, the bill would formally authorise the MMA to establish or co-own companies and other legal entities tasked with operating payment systems and delivering payment services. The amendment also outlines specific legal definitions to prohibit the public solicitation of payment services by unlicensed entities.
Under the proposed changes, “solicitation” refers to offering a payment service to the public or advertising such services. Only those with a valid licence or explicit exemption from the MMA would be permitted to operate or promote payment-related services within the country.
Currently, the law exempts a limited set of systems from licensing requirements, including systems run by the MMA itself, those licensed under the Financial Securities Act for securities settlements, and internal payment systems operated by licensed banks for their own clients.
The amendment to Section 50 would reinforce the licensing requirement by introducing financial penalties for non-compliance. Entities operating in violation of the Act could face fines up to MVR 10 million, depending on the severity of the breach.
The proposed legislative amendments and supporting infrastructure are intended to make the Maldives’ payment industry more resilient, transparent, and aligned with international best practices.
