The Maldives Monetary Authority (MMA) has appealed to all parties to comply with the Foreign Exchange Act, having noted that foreign currency continues to be exchanged in the country without a license.
MMA said that while the Foreign Exchange Act and the Regulation on Money Changing Businesses state clearly that the business of exchanging foreign currency in the Maldives is to be conducted only under a license issued by the authority, it has been observed that certain parties are carrying out foreign exchange transactions without holding the said license.
As the practice constitutes an offence under Maldivian law, the authority went on to appeal to the public to refrain from transacting with any business conducting currency exchange without an MMA license.
Besides this, MMA appealed that where a foreign exchange transaction is conducted with any party other than a bank, the customer ought to satisfy himself that the counterparty holds a money changing license, and that the transaction is carried out in accordance with the applicable laws and regulations.
The authority noted, in this regard, that it had recently revoked the license of a money changer which had conducted foreign exchange transactions contrary to the law and the regulation.
MMA had earlier identified the revoked license as that of Express Money Exchange Private Limited.
The police said that 65 cases connected to the work of the task force has been submitted by members of the public to the hotline established for the purpose of gathering information on parties conducting foreign exchange transactions in breach of the regulation.
Among the said reports, the police said, were cases concerning 18 premises engaged in the business of buying and selling foreign currency without authorization, and a further four premises buying and selling foreign currency at inflated rates in breach of the regulation.
The institution added that information had also been submitted on 27 foreign nationals exchanging currency in breach of the regulation, along with 16 online platforms through which such transactions are being conducted.
At a press conference held on August 24, Home Minister Ali Ihusaan said that an examination of seven parties which had been exchanging currency without a permit revealed that the said parties had exchanged USD 76 million on the black market over the preceding 9 months.
The present government has resolved to take stringent measures to bring the dollar black market under control.
Among the said measures is a prohibition on advertising or promoting the buying and selling of foreign currency at rates exceeding those determined by the MMA. In this regard, the disclosure, publication and dissemination of black market rates, whether through digital means or otherwise, has been designated an offence.