MMA Receives 98 Applications Under New Foreign Exchange Regulation

The Maldives Monetary Authority (MMA) has announced that 98 parties have applied for money exchange licences under the newly enacted Foreign Exchange Regulation. 

Meanwhile, the central bank has cancelled 163 licences issued under the previous regulatory framework. The new regulation introduces a two-tier licensing system:

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Tier 1 Licence: Permits both buying and selling of foreign currency.

Tier 2 Licence: Allows only the selling of foreign currency.

Applications for the updated licences opened on 3 October, and MMA has confirmed that 49 of the 98 applicants are new businesses. The remaining 49 applicants are among the 212 entities that held licences under the previous system. Of the new applications, 79 are for Tier 1 licences, while 19 are for Tier 2.

Under the changes, MMA has revoked 99 Tier 1 and 64 Tier 2 licences. However, the central bank clarified that existing money exchange operators with previously issued licences can continue transactions until decisions are finalised regarding their new licence applications.

Tier 2 licences will be granted exclusively to businesses operating tourist resorts under the Tourism Act. These licences will remain valid for the duration of the resort’s operational licence. Moreover, Tier 2 licensees are restricted to conducting exchange transactions with local banks or Tier 1 licence holders.