Replace Monetary regulation (1987), Regulation on money changing businesses (1987).
Follows MLD FIU Jan. 2021 updated on payment of money chargers fee, see #95851.
Purpose
Improve the inflow of foreign currency into the Maldivian banking system and facilitate foreign currency requirements of businesses and the public within the official market.
Expand MLD CB's forex intervention capacity and further support its forex policies.
Foreign Currency
All transactions conducted within the Maldives must be carried out in MVR; exemptions for businesses that earn income in foreign currency, when paying salaries/remuneration.
Businesses may also apply for exemptions for paying taxes in foreign currency, making credit payments to FIs in foreign currency, financial obligations to a court judgement.
Introduce measures aimed at retaining foreign currency earnings at domestic banks.
Money Changing Businesses
Two types of licenses will be issued; Tier 1 license for conducting buying and selling of foreign currency, and Tier 2 license for conducting selling of foreign currency.
This allows tourism establishments registered to buy foreign currency from tourists or sell foreign currency to tourists without obtaining a money changing license.
Both Tier 1 and 2 license holders must keep USD 50k with MLD CB as security deposit.
Existing money changing license holders will have to apply for a Tier 1 or Tier 2 money changing license within two months from the date of commencement of the regulation.
MLD CB also revised Regulation on fees and charges payable by financial institutions on the same day, to dispense with the need for such businesses to pay annual fees.
Effectiveness
Both regulations come into effect on Oct. 1, 2024.
On Oct. 17, 2024, MLD CB published General FAQs regarding the regulation on foreign currency and General FAQs regarding the regulation on money changing business.
Also published User guide on how to complete the FX Portal registration form.
Oct. 24, 2024 Registration Reminder
On Oct. 24, 2024, MLD CB reminded businesses providing goods, services to tourists, specifically those registered for TGST must register with MLD CB by Oct. 30, 2024.
Nov. 2024 Registration, FAQ
On Nov. 24, 2024, MLD CB reminded goods and service providers to register as soon as possible; it also published an FAQ on money changer license registration.
In Nov. 2024, MLD CB said foreign currency bill open for comments, see #234909.
Dec. 2024 Tier 2 License Opens
On Dec. 9, 2024, MLD CB issued an announcement that applications are open for the tier 2 money-changing license for companies licensed to operate tourist resorts.
Feb. 2025 Tier 1 Application Window Reopened
On Feb. 24, 2025, MLD CB said it reopened the Tier 1 money changer license applications window; the application period is open until Apr. 15, 2025.
