The Maldives Monetary Authority (MMA) has issued regulations for businesses required to register under the Foreign Currency Act, which came into effect on January 1. The regulation outlines the registration process and mandatory currency exchange rules for eligible businesses.
According to the regulation, businesses in the tourism sector and non-financial institutions earning at least USD 15 million annually must register with the central bank to comply with the mandatory USD exchange requirements outlined in the Act.
Registration Requirements
- Businesses that earned USD 15 million or more in 2024 must register with the MMA before February 3, 2025.
- Businesses that cross the USD 15 million threshold in any subsequent calendar year must register by January 31 of the following year.
- Newly established tourism businesses starting operations after January 1, 2025, must complete their registration within 30 days of commencing operations.
Registrations are processed through the MMA’s Foreign Exchange Portal.
USD Exchange Rules for Tourist Establishments
The regulation provides flexibility for tourist establishments, allowing them to choose between exchanging a fixed amount per tourist or 20% of their monthly revenue.
- Category-A Establishments: Resorts, integrated resorts, and private islands must either exchange USD 500 per tourist or 20% of their monthly revenue.
- Category-B Establishments: Tourist vessels, hotels, and guesthouses must exchange either USD 25 per tourist or 20% of their monthly revenue.
Certain exemptions apply, including tourists staying less than 24 hours, children under 12 years old, tourists hosted on a complimentary basis, and guests hosted by the government.
Non-Tourism Businesses
Non-tourism businesses, excluding financial institutions, with annual USD earnings exceeding USD 15 million are also required to exchange a percentage of their monthly revenue and register with the MMA.
The Foreign Currency Act aims to strengthen the management of foreign exchange transactions and ensure a more consistent inflow of foreign currency in the Maldives’ economy. By implementing a structured registration and exchange system, the government seeks to enhance transparency and improve economic resilience.
