Individuals caught buying or selling US dollars and other foreign currencies outside the official exchange rate could face fines of up to MVR 1 million under amendments to the Foreign Currency Act approved by Parliament’s Public Accounts Committee.
The committee passed the amended bill by a majority vote on Wednesday after it was recommitted for further review, introducing tougher provisions aimed at curbing foreign currency trading through the informal market.
The changes include amendments proposed by Funadhoo MP Mohamed Mamdhooh and introduce specific penalties not only for conducting black market transactions, but also for attempting such transactions and promoting unofficial exchange rates.
Under the committee-approved provisions, buying, selling or attempting to exchange foreign currency through any medium at a rate above or outside the official exchange rate or permitted band determined and published by the Maldives Monetary Authority (MMA) would be prohibited.
Individuals found in violation could be fined between MVR 25,000 and MVR 1 million, with the penalty determined according to the severity of the offence.
While unauthorised foreign currency trading was already prohibited, the proposed changes seek to provide stronger legal provisions and clearer penalties for enforcement against the parallel market.
The committee has also moved to target the public promotion of unofficial exchange rates.
Under the amendments, publishing, advertising or promoting the buying and selling of foreign currency at rates outside those permitted by MMA would constitute an offence.
The provision adopts a broad definition of advertising and promotion, covering the disclosure, publication, circulation, repetition or broadcasting of exchange rate information through digital platforms and other forms of media when used to advertise, encourage or facilitate foreign currency transactions outside official rates.
Businesses and other legal entities involved in such activity could face substantially higher penalties.
Where a legal entity or registered business facilitates violations involving the promotion or advertisement of unofficial foreign currency trading, fines would range from MVR 100,000 to MVR 5 million.
The amendments come amid renewed efforts by the government and MMA to increase the amount of foreign currency circulating through the formal banking system and reduce dependence on the parallel market.
The Maldives has for years maintained an official exchange rate of MVR 15.42 per US dollar, while dollars have frequently traded at higher rates outside banks due to demand from individuals and businesses.
Authorities have recently introduced several measures aimed at improving access to foreign currency through official channels.
MMA this month increased its weekly US dollar allocation to commercial banks by 51 percent for a three-week period, aimed at improving availability for businesses and easing pressure in the foreign exchange market.
Bank of Maldives subsequently announced an increase in dollar allocations for Telegraphic Transfers during the same period. BML has said it provided around USD 570 million for various customer requirements during the first seven months of 2026, averaging approximately USD 2.7 million per day.
The government is also pursuing changes to mandatory foreign currency exchange requirements for tourism businesses.
Under proposed amendments, resorts would no longer have the option of exchanging USD 500 per tourist and would instead be required to exchange 20 percent of their monthly revenue through the banking system. MMA estimates that the change could bring an additional USD 100 million into the formal banking system each year.
The latest parliamentary amendments take a different approach by strengthening penalties on the other side of the market, targeting those who trade foreign currency outside authorised rates as well as those who advertise or promote such transactions.
However, the provisions approved by the Public Accounts Committee are not yet law.
The amended bill must first be passed by the full People’s Majlis before being sent to President Dr. Mohamed Muizzu for ratification. Until that process is completed and the amendments take effect, the newly proposed penalties cannot be imposed.
If approved by Parliament and ratified, individuals engaging in black market foreign currency transactions could face penalties reaching MVR 1 million, while businesses involved in promoting or facilitating such activity could face fines of as much as MVR 5 million.
