Applications must be submitted within two months, after which licenses of non compliant businesses will be void.
Maldives Monetary Authority (MMA) has gazetted a new regulation governing money exchange businesses, which nullifies the previously enacted Monetary Regulation of 1 March 1987.
The new regulation introduces a two-tier licensing system. Tier 1 licenses will be issued for foreign currency trading and are available only to companies established under the Companies Act and fully owned by Maldivians.
These licenses are valid for five years, and all employees involved in the business must also be Maldivian. The application fee for Tier 1 is MVR 20,000, with an annual fee of MVR 24,000.
The maximum cash transaction per customer per day is capped at MVR 50,000 or its equivalent in foreign currency.
Tier 2 licenses are given for companies licensed under the Tourism Act to operate tourist resorts. The application fee for Tier 2 licenses is USD 1,300, with an annual fee of USD 1,800. Tier 2 entities must exchange foreign currency either through a bank or a Tier 1 entity, and each licensee is required to place a security deposit of USD 50,000.
MMA stated that the new regulations aim to strengthen the operations of money changing businesses, while also strengthening efforts to supervise them.
Currently, 221 money changers are registered with the MMA. Businesses licensed under the previous regulation can apply for new licenses and continue operations under their old license until the MMA makes a decision.
Applications must be submitted within two months, after which licenses of non compliant businesses will be void.
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