Minister of Homeland Security and Technology Ali Ihusaan has revealed that resort chains, construction companies and political figures are among those involved in Maldives’ illegal dollar market, warning that authorities will take firm legal action against those found responsible.
Speaking at a joint press conference involving relevant government ministries and the Maldives Monetary Authority (MMA), Ihusaan said authorities have intensified efforts to disrupt unlicensed foreign currency trading and strengthen enforcement of foreign exchange regulations.
According to the minister, 63 licensed money exchange businesses currently operate in the Maldives. However, investigations have identified several entities allegedly providing money exchange services without the required licences or permits.
Authorities have so far gathered information on seven such entities, which Ihusaan said collectively traded USD 76 million through the black market over the past nine months.
“Acquiring profits, either personally or through businesses, by committing a criminal offence amounts to money laundering,” Ihusaan said.
He argued that unlicensed intermediaries do not bring additional foreign currency into the Maldives, but instead profit by buying and reselling dollars already circulating in the economy.
Ihusaan said the investigation had also uncovered links to major businesses and politically connected individuals.
“One resort chain alone has sold USD 4 million on the black market within a nine-month period,” he said.
The minister added that some construction companies receiving dollar payments from resort development projects had allegedly diverted foreign currency to the parallel market. He also accused certain political figures of being involved in determining black market exchange rates.
The government has stepped up its campaign against illegal foreign currency trading as it seeks to channel more dollar transactions through regulated financial institutions and reduce the influence of the parallel market.
Ihusaan warned that conducting a regulated business without the necessary permit constitutes a criminal offence and said proceeds generated through such activities could raise money laundering concerns.
He said authorities would pursue those involved regardless of their business or political standing.
Unauthorized foreign exchange transactions are also subject to regulatory action by the MMA, with penalties for violations ranging from MVR 5,000 to MVR 1 million.
