Applications open for money changer license

Applications have opened for money changer license under the new regulation on money changing business published by the central bank on Tuesday.

The new regulation, which the Maldives Monetary Authority (MMA) said was formulated as part of the authority’s efforts to strengthen the legal framework of the foreign exchange market and maintain stability in the financial sector. It replaced previous regulations dating back to 1984.

MMA said it will issue two types of licenses for money changing businesses; a ‘Tier 1 Money Changing License’ and a ‘Tier 2 Money Changing License’.

• Tier 1 Money Changing License: License for buying and selling foreign currency.

According to the MMA, this license will be issued to companies established for buying and selling foreign currency under the Companies Act.

• Tier 2 Money Changing License – License for selling foreign currency.

According to the MMA, this license will be issued to companies licensed to operate tourist resorts under the Maldives Tourism Act.

With the implementation of the new regulations, entities currently conducting money changing businesses in the Maldives with a license issued by the MMA may continue their operations under their existing licenses until the Authority decides on and informs them about their application for a license under this new regulation.

With the implementation of the new regulations, entities currently conducting money changing businesses in the Maldives need to apply for a new license within two months.

Applications can be submitted via MMA’s portal.

According to the MMA, new licenses under the regulation will be issued to a total of 50 entities. If the number of new applicants exceeds this limit, licensees will be determined by a draw among qualified applicants. The deadline for new license applications is November 30.