- Minister Ali Ihusaan said unlicensed money exchange services handled around USD 76 million over the past nine months, describing it as a criminal offence that could constitute money laundering.
- He said 63 establishments operate with permits while at least seven operate without licences, with those involved including well-known resort chains and the construction sector.
- Ihusaan said names of the establishments would not be disclosed immediately but revealed when investigations and enforcement reach the appropriate stage.
The Minister of Homeland Security, Labour and Technology Ali Ihusaan has said that unlicensed money exchange services handled around USD 76 million over the past nine months, describing the activity as a criminal offence that could constitute money laundering.
Speaking at a press conference at the President’s Office today, Ihusaan said 63 establishments currently operate with the required permits to exchange foreign currency, while at least seven others operate without licences.
He said authorities recorded approximately USD 76 million in exchanges through the seven unlicensed establishments over the past nine-month period.
“Under Maldivian law, carrying out an activity without a permit when a permit is legally required is a criminal offence. This means that exchanging money without a permit is a criminal offence. According to current Maldivian law, using money obtained through such a criminal offence for personal use or business purposes, or deriving personal benefit from it, constitutes money laundering,” he said.
Ihusaan said those involved could be participating in money laundering whether knowingly or unknowingly.
He said the establishments involved do not necessarily generate revenue in US dollars themselves but receive foreign currency from individuals and businesses that do. According to Ihusaan, those involved include well-known resort chains, with one resort chain exchanging around USD 4 million through such channels over the nine-month period.
He added that the construction sector was also involved and that authorities were investigating other establishments and individuals.
Responding to a question about individuals who receive salaries in foreign currency, Ihusaan distinguished between those earning an income in foreign currency and those receiving their salaries in dollars. However, he said people who exchange their dollar salaries through unlicensed establishments are engaging in money laundering, whether knowingly or unknowingly.
He said large-scale money laundering was primarily linked to individuals and businesses earning income in dollars and exchanging large amounts through unlicensed money exchange services.
When asked why the authorities had not disclosed the names of the establishments involved, Ihusaan said naming them was not the immediate objective.
“What we want is to explain how this works to the public so they are aware, and to take action against those operating in violation of the law and regulations. While taking action against lawbreakers, when it reaches a point where names must be disclosed, those names will be fully revealed,” he said.
Ihusaan said the authorities do not intend to disclose names immediately upon identifying suspected illegal activity but would reveal them when investigations and enforcement action reach the appropriate stage.
