The Parliamentary Public Accounts Committee has approved sweeping amendments to the Foreign Exchange Act, making it a criminal offence to sell or advertise U.S. dollars at rates that diverge from those set by the Maldives Monetary Authority (MMA).
The bill, which had been re‑referred to the committee for review, passed by a majority of members present and now includes a tiered penalty structure expressed in U.S. dollars.
Under the revised law, any person or entity that sells, or attempts to sell, foreign currency outside the MMA’s official bands will face a fine of USD 1,620 to USD 64,800, depending on the seriousness of the breach. The measure also targets marketing practices—advertising, promoting or otherwise disseminating information that encourages transactions at non‑compliant rates is punishable by a USD 1,620 to USD 32,400 fine.
Corporate offenders are not exempt. Companies caught buying, selling, or advertising foreign exchange at unauthorised rates will be liable for penalties ranging from USD 6,480 to USD 324,200. The amendments were moved by Funadhoo MP Mohamed Mamdhooh, who argued that transparent, regulated exchange rates are essential for protecting the country’s tourism‑driven economy and preventing profiteering against consumers.
The amendment adds to the original proposed move stipulating that all foreign‑currency earnings—whether from tourism operators or any entity that generated at least USD 25 million in foreign revenue in the previous calendar year—must be deposited into an account at an MMA‑licensed bank, with details reported to the authority. Category‑A tourism establishments will now be obliged to convert 20 percent of their monthly foreign‑currency earnings into MVR.