New Currency Exchange Regulations Enforced in the Maldives

The government has introduced stricter regulations governing the exchange of foreign currency, prohibiting foreign nationals from participating in the business. 

The new rules were made public last night as part of the updated ‘Regulation Governing Money Exchange Business’.

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Under the new regulation, two types of licenses will be issued: the Tier 1 Money Exchange License and the Tier 2 Money Exchange License.

The Tier 1 license, which covers both buying and selling foreign currency, will be granted exclusively to companies established for this specific purpose. Ownership of these companies must be held by Maldivian nationals. The license will be valid for five years, and businesses are required to operate in dedicated establishments. A fee of MVR 20,000 is required when applying for the license, with a renewal fee set at MVR 10,000.

The Tier 2 license applies to companies licensed to operate tourist resorts under the Tourism Act. This license allows for the sale of foreign currency in collaboration with either a bank or a Tier 1 license holder. The license will remain valid for the duration of the resort’s operating license. A fee of USD 1,300 will be charged upon application, while the renewal fee is set at USD 650.

The regulation aims to formalise and better regulate the foreign currency exchange sector, ensuring it remains within the hands of Maldivian citizens and licensed businesses.