MMA raises fees and tightens standards for dollar exchange licenses

The Maldives Monetary Authority (MMA) has amended the General Regulation on Foreign Currency to increase fees and introduce stricter operational standards for businesses licensed to exchange foreign currency.

Under the revised regulation, the application fee for a Tier One license, which permits both buying and selling of foreign currency, has doubled from MVR 20,000 to MVR 40,000. The renewal fee has also increased from MVR 10,000 to MVR 20,000, while the annual fee now stands at MVR 48,000, up from MVR 24,000.

Tier One licenses are now issued under two subcategories: Category A, for businesses serving the general public and other entities, and Category B, for those targeting businesses only. The license will specify the applicable category at the time of issuance.

For Tier Two licenses, which authorize only the sale of foreign currency, the application fee has risen from USD 1,300 to USD 2,600, and the renewal fee from USD 650 to USD 1,300. The annual fee has also doubled, from USD 1,800 to USD 3,600.

In addition to the fee hikes, the MMA has revised the security deposit requirement. License holders must now maintain a deposit of MVR 100,000 with the Authority, replacing the previous USD 50,000 requirement.

The amendment also introduces new compliance standards for licensed operators. Businesses must display exchange rates on a digital board at the designated service location, store cash securely, and install CCTV cameras that cover the entire premises and remain operational at all times.

These changes follow the gazetting of two key regulations last year: the Regulation on Foreign Exchange Inflows and the Regulation on Foreign Exchange Trade, both issued on October 1. The rules aim to regulate and supervise currency exchange businesses, prevent money laundering, and ensure transparency in foreign exchange transactions.

Under the broader framework, certain businesses, including resorts and guesthouses, are required to exchange dollars for each tourist. While the rule has faced criticism from business owners, the government has since relaxed its enforcement and is drafting a new law to address concerns.