MMA to Publicly List Non-Compliant Businesses as FX Conversion Deadline Approaches

The Maldives Monetary Authority (MMA) has warned that it will publish the names of businesses that fail to meet mandatory foreign currency conversion requirements, as the first deadline under a shorter conversion timetable approaches.

In a statement issued on 26 October, the central bank reminded parties covered by Article 10 of the Foreign Currency Act to convert the prescribed portion of their monthly foreign currency earnings before the 28th of the following month. MMA said the names of parties that miss their obligations would be published in accordance with its policy.

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The reminder comes ahead of the deadline for converting September earnings under amendments that took effect on 1 September. Businesses must complete the required conversion before 28 October, replacing the previous deadline of the 28th of the third subsequent month.

Under the amended law, Category A tourism establishments, including resorts, must convert 40 per cent of their monthly gross foreign currency sales into Maldivian rufiyaa through a licensed bank. The amendments removed the alternative option of converting USD 500 per tourist.

Category B establishments, which include tourist hotels, guesthouses and tourist vessels, retain the choice of converting either USD 25 per eligible tourist arrival or 20 per cent of monthly gross foreign currency sales. Statutory exclusions apply to the tourist count, including children under 12 and tourists staying no more than 24 hours.

The regulations allow TGST, green tax and service charge obligations for the month to be deducted when calculating gross foreign currency sales subject to conversion.

Outside tourism, the requirement applies to businesses other than financial institutions that earned at least USD 25 million, or its equivalent, in foreign currency from goods and services during the preceding calendar year. Qualifying businesses must generally convert 40 per cent of their monthly gross foreign currency sales, while wholly Maldivian-owned businesses are subject to a seven per cent requirement.

Depositing foreign currency earnings and converting the prescribed amount into rufiyaa are separate obligations under the Act. A deposit into a foreign currency bank account alone does not fulfil the conversion requirement.

MMA’s latest statement did not identify any non-compliant businesses or specify when their names would be published.