The Maldives Monetary Authority (MMA) has announced the opening of registration for goods and service providers in the tourism sector. This initiative follows the implementation of the Regulation on Determination of Foreign Exchange Transactions and Other Policies on Foreign Exchange Rates, which came into effect on October 1.
In its statement, the MMA specified that all tourism service providers registered with the Maldives Inland Revenue Authority (MIRA) must complete their registration with the MMA by October 31 using the MMA Effex Portal Registration Form. Businesses registered with MIRA in the tourism sector after the new regulations came into force will need to register with the MMA within 30 days of their MIRA registration.
The MMA emphasized that these measures are crucial for the continued expansion of the foreign exchange market and the effective implementation of foreign exchange policies. They urged all stakeholders to cooperate in this process.
Under the new Foreign Exchange Rules, tourism businesses are required to deposit foreign earnings into the banking system and must register with the MMA within a month of the rules taking effect.
Tourism service providers are categorized into two groups for foreign currency deposits. Category A, which includes resorts, large hotels, and tourist vessels, requires a deposit of USD 500 per tourist. Category B, covering guesthouses and smaller hotels, mandates a USD 25 deposit per tourist. Those unable to meet these amounts can apply for permission to deposit a lesser amount.
The MMA has specified that 60% of foreign exchange entering the banking system must be sold to the MMA weekly, establishing a system to ensure banks can continuously meet foreign exchange demand. This is expected to alleviate the challenges banks currently face in accessing foreign currency.
Additionally, significant changes have been made to the foreign exchange and money changer regulations. New licensing requirements for currency exchange businesses include a security deposit of USD 50,000, and only Maldivians will be permitted to operate in this sector.