Minister of Homeland Security and Technology Ali Ihusaan has issued a firm warning that strict legal action will be taken against Maldivians who register businesses that are illegally operated by foreign nationals, as the government intensifies enforcement efforts nationwide.
Speaking at a press conference held by the Ministry of Homeland Security and Technology, Minister Ihusaan revealed that 47 businesses were shut down within the past week following targeted inspections aimed at curbing illegal commercial activities.
The Minister said investigations show that most of the closed establishments were registered under Maldivian names but were effectively controlled and operated by foreigners. He noted that in many cases, the Maldivians listed as owners claimed they were unaware of the actual activities being conducted under their registrations.
Authorities also uncovered serious financial violations. According to Ihusaan, significant portions of revenue generated by these businesses, which operated without required permits and failed to pay due taxes, were channelled through the personal bank accounts of foreign individuals.
“These operations bypass state institutions, avoid tax obligations, and undermine the legal business environment,” Ihusaan said, stressing that such practices pose risks to economic integrity and national security.
He warned that enforcement will now go beyond closures. From this point forward, Maldivians found to be facilitating or allowing foreigners to misuse their business registrations will face the full penalties provided under existing laws.
“I strongly advise Maldivians not to allow businesses registered under their names to be run by foreigners,” Ihusaan said. “Any illegal activity carried out within those establishments will be the responsibility of the Maldivian parties who registered them.”
The Minister urged those currently involved in such arrangements to immediately shut down operations and cooperate with authorities by reporting individuals operating illegally.
He added that since the public reporting channel for illegal businesses was opened, more than 200 establishments have already been reported, reflecting strong public support for the government’s crackdown.
The Ministry confirmed that enforcement operations will continue nationwide as part of a broader effort to uphold the rule of law, protect legitimate Maldivian businesses, and ensure fair economic practices.
