Businesses in the Maldives will have to follow new foreign currency conversion rules after major changes were made to the Foreign Currency Act.
The First Amendment to the Foreign Currency Act was gazetted on September 1, 2026. It changes how much foreign currency some businesses must convert and gives them less time to complete the conversion.
One of the biggest changes affects Category A businesses. They must now convert 40 percent of their monthly foreign currency income.
The previous option of converting USD 500 for each tourist has been removed. There is no change to the amount Category B businesses are required to convert.
Changes have also been made to Category C.
Previously, businesses outside the tourism and financial sectors were placed under Category C if they earned at least USD 15 million a year. That threshold has now been increased to USD 25 million.
Category C businesses must convert 40 percent of their foreign currency income. However, businesses that are 100 percent Maldivian-owned only have to convert 7 percent.
Less time to convert foreign currency
Businesses will also have a much shorter period to complete their required conversions.
Previously, they had three months. Under the amended law, businesses must convert the required amount from each month’s foreign currency income by the 28th of the following month.
For example, the required amount from foreign currency earned in September must be converted by October 28.
New rules for currency exchange businesses
The amendment also introduces changes to how foreign currency exchange businesses will be regulated.
The Maldives Monetary Authority (MMA) is expected to introduce regulations covering licensing, supervision and the responsibilities of licensed currency exchange businesses.
The regulations will also explain how businesses that already held licences before the amendment will be treated.
According to the document, these regulations have not yet been gazetted.
MMA approval needed for some payments
Businesses earning foreign currency should also be aware of rules governing how that money can be used.
If such a business wants to use foreign currency to pay for goods or services it purchases, it must obtain approval from the MMA for those payments, subject to the provisions of the Act.
Businesses covered by the Act are also required to deposit realised sales into a foreign currency account opened with a bank licensed by the MMA.
The account details must be provided to the MMA in the manner determined by the authority.
The changes mean affected businesses will need to pay closer attention to their monthly foreign currency income and conversion deadlines, particularly as the previous three-month conversion period has been replaced with a much shorter deadline.
Businesses subject to the Act should familiarise themselves with the new requirements to ensure they meet their obligations under the amended law.
