In the ongoing efforts of the Maldives government to identify and curtail illegal businesses led by foreign nationals, the authority reports recently of shutting down 107 such ventures.
According to the Ministry of Economic Development’s most recent updates, it received 447 reports from various members of the public pertaining to illegal businesses.
The ministry inspected 274 out of these outlets, of which 40% had shown various degrees of violations or breaches to relevant laws. The ministry effectively and promptly shut down these businesses.
Maldivian law prohibits foreigners from registering and operating small to medium tier ventures. The only legal ease is for such expatriates to run ventures through partnership with local shareholders. This facilitation however, has become a means of exploitation for several foreigners who have been obscuring the real shareholders of such businesses on the pretext of local shareholders.
For years, there has been a growing concern over the challenges local entrepreneurs in small to medium tier category face from foreign-led businesses. Primarily because they hold a stronger edge when it comes to foreign supplier contacts and cheaper options of import due to this.
To provide a permanent solution to this long prevailing issue, the ministry launched a multi-department initiative with the collaboration of the Maldives Immigration and Maldives Police Service.
The joint taskforce is responsible for the largest nationwide crackdown in the Maldivian history against illegal businesses owned and run by expatriates.