New Regulation Mandates Foreign Currency from Tourism to be Deposited in Local Banks

The Maldivian government has introduced a new regulation requiring all foreign currency earned through tourism to be deposited in local banks. 

The regulation, published in the government gazette yesterday, provides a 30-day period for existing businesses in the tourism sector, including those registered with the Maldives Inland Revenue Authority (MIRA), to re-register. New businesses registering with MIRA will also have a 30-day period to register with the Maldives Monetary Authority (MMA).

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The new rule mandates that tourism-related goods and service providers must submit details of their transactions to the MMA by 28th October. Additionally, information regarding foreign currency earnings deposited in banks must be shared with relevant authorities, as instructed by the banks.

USD Exchange Requirements for Tourist Establishments

The regulation also specifies that tourist establishments must exchange a fixed amount of US Dollars per tourist at a local bank. 

Category A establishments, which include resorts, integrated resorts, resort hotels, and larger hotels subject to the Green Tax, are required to exchange USD 500 per tourist by the 28th day of the third month following the respective tourist’s arrival.

Meanwhile, Category B establishments, such as guesthouses and hotels with 50 or fewer rooms in residential areas that are also subject to the Green Tax, must exchange USD 25 per tourist under the same terms.

Failure to comply with these regulations may result in fines ranging from MVR 5,000 to MVR 1 million.