The Monetary Authority of the Maldives (MMA) has released new regulations governing the money-exchanging business, aimed at enhancing oversight and establishing clear licensing procedures for operators in the sector. The new rules will regulate, supervise, and prescribe other operational matters related to money exchange businesses.
Under the updated regulations, two types of licenses will be issued:
1. Tier 1 Money Changing License – This license allows businesses to buy and sell foreign currency.
2. Tier 2 Money Changing License – This license permits trading in foreign currency.
According to the rules, establishments registered under the Tourism Act of the Maldives are exempt from requiring a license to buy foreign currency from tourists and sell it back to them.
The Tier 1 license will have a validity of five years and mandates that all employees involved in the money-changing business must be Maldivian citizens. Furthermore, the maximum amount of cash transactions allowed per customer per day is set at MVR 50,000 or its equivalent in foreign currency.
A Tier 2 license will be granted to companies that are licensed to operate tourist resorts under the Tourism Act. The term of this license will align with the duration of the permit or license to operate the tourist resort. Tier 2 licensees are required to conduct foreign exchange transactions through a bank.
Additionally, each Tier 2 licensee must issue a receipt to customers following the sale of foreign currency. This receipt must include the customer's full name, identification document number, type and amount of currency sold or purchased, and the rate at which the transaction occurred.
To ensure compliance, each licensee must provide a security deposit of $50,000. Existing licensees will be permitted to continue operating under their previous licenses until they apply for the new licenses and the MMA determines their applications.
These new regulations reflect the MMA's commitment to establishing a robust framework for the money-exchanging business, promoting transparency and security in foreign exchange transactions.
Under the updated regulations, two types of licenses will be issued:
1. Tier 1 Money Changing License – This license allows businesses to buy and sell foreign currency.
2. Tier 2 Money Changing License – This license permits trading in foreign currency.
According to the rules, establishments registered under the Tourism Act of the Maldives are exempt from requiring a license to buy foreign currency from tourists and sell it back to them.
The Tier 1 license will have a validity of five years and mandates that all employees involved in the money-changing business must be Maldivian citizens. Furthermore, the maximum amount of cash transactions allowed per customer per day is set at MVR 50,000 or its equivalent in foreign currency.
A Tier 2 license will be granted to companies that are licensed to operate tourist resorts under the Tourism Act. The term of this license will align with the duration of the permit or license to operate the tourist resort. Tier 2 licensees are required to conduct foreign exchange transactions through a bank.
Additionally, each Tier 2 licensee must issue a receipt to customers following the sale of foreign currency. This receipt must include the customer's full name, identification document number, type and amount of currency sold or purchased, and the rate at which the transaction occurred.
To ensure compliance, each licensee must provide a security deposit of $50,000. Existing licensees will be permitted to continue operating under their previous licenses until they apply for the new licenses and the MMA determines their applications.
These new regulations reflect the MMA's commitment to establishing a robust framework for the money-exchanging business, promoting transparency and security in foreign exchange transactions.
