MMA announces amendments to money exchanging regulations

Amendments to the Money Exchanging Businesses Regulation now permit licensed operators to facilitate business-to-business deposits without the need for physical counters.

Central Bank, Maldives Monetary Authority (MMA) announced the amendment, which introduces two distinct categories under Tier 1 licensing.

The rules previously outlined two tiers: Tier 1 for buying and selling foreign currency, and Tier 2 for foreign exchange trading, which is reserved for tourism businesses.

According to the new amendment, the two categories separated under Tier 1 are:

Under Category A, an agency can now apply to provide foreign exchange services at a location other than its permanent premises for the purpose of depositing currency. MMA retains the authority to grant this permission under conditions or procedures it deems appropriate.

An application fee of MVR 40,000 will be charged for seeking permission to transact money at an additional or non-counter location. This fee is payable upon application and is non-refundable even if the permit is denied. The renewal application for this permit requires a fee of MVR 20,000.

MMA stipulated that any change in address, even if the permanent place of providing foreign exchange services is moved, will require their permission.

License holders under Tier 1 will now pay an annual fee of MVR 48,000, a significant increase from the previous fee of MVR 24,000. An additional annual fee of MVR 10,000 will be paid for each supplementary location permitted under Category A. The license period for Tier 1 remains five years.

Under the new amendment, cash transactions for Category A businesses are limited to MVR 50,000 or its foreign currency equivalent. Any transactions exceeding this amount must be conducted through bank accounts.

Fees for Tier 2 licenses have also been adjusted. The application fee is now USD 2,600, up from the previous USD 1,300. The renewal fee for a Tier 2 license is USD 1,300.