Maldives Monetary Authority has said that as by the deadline, they had received 93 applications for money exchange licenses under the new regulations, the previously granted 163 licenses have now been revoked.
Maldives Monetary Authority has said that as by the deadline, they had received 93 applications for money exchange licenses under the new regulations, the previously granted 163 licenses have now been revoked.
Prior to the new regulations coming into effect, money exchange licenses had been granted to 212 companies. However, only 49 out of the current service providers applied for licenses within the two month window granted after the new regulations were set in place.
The 163 licenses that were revoked include 99 licenses granted to commercial businesses, and 64 to resorts.
The 49 who applied to renew the license include 35 commercial businesses and 14 resorts.
According to the new regulations published on October 1, the license is issued in two tiers. Tier 1 is for buying and selling foreign currency. Tier 2 is for sale of foreign currency.
Tier 1 involves an application fee of MVR 20,000. Annual fee for the license is MVR 24,000.
The regulation further sets a daily transaction limit of MVR 50,000 or equivalent in foreign currency per customer.
Tier 2 is for tourist resorts registered under the Tourism Act. Application fee in this tier is USD 1,300, with an annual fee of USD 1,800.
Tier 2 must conduct any sale of foreign currency through a bank or a Tier 1 license holder.
A security deposit of USD 50,000 applies to all license holders.
MMA received 44 applications for Tier 1 licenses and 5 applications for Tier 2 licenses.
MMA said that from amongst the applicants, those who meet the criteria will be granted the license. Under the new regulations, money exchange businesses must be run by Maldivians and their financial statements must be shared with the central bank.
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