Wednesday, October 2, 2024 The Maldives Monetary Authority (MMA) has announced a new regulation that mandates all foreign currency income generated by the tourism sector to be deposited in local banks. This move is part of a broader effort to streamline foreign currency flows within the country. Under the new rule, businesses in the tourism industry registered with the Maldives Inland Revenue Authority (MIRA) must re-register with the MMA within 30 days.
Newly registered businesses must comply within the same period. Tourism service providers are now also required to submit details of their services to the MMA by the 28th of each month. All foreign currency earnings must be deposited into a foreign currency account at a local bank, registered with the MMA, within 87 days following the end of each month.
The regulation stipulates that domestic transactions be conducted in Maldivian Rufiyaa, with exceptions including government-related transactions, remittances, foreign transactions, and sales to tourists. Businesses found conducting foreign currency transactions outside of these exceptions will face penalties ranging from MVR 10,000 to MVR 1 million. Additional violations of the regulation can also result in fines up to MVR 1 million.
In a second change, the MMA has amended the Foreign Currency Regulation, requiring tourism facilities to exchange a portion of their foreign currency earnings at local banks. Resorts, hotels, and tourist vessels (Category A) are required to excha.