MS Finance Faces MVR 500,000 Fine and License Suspension by MMA Due to Currency Breaches

The Maldives Monetary Authority (MMA) has suspended the money exchange licence of MS Finance Currency Exchange Private Limited and fined the company MVR 500,000. The regulatory authority implemented the supervisory measures on Sunday, following breaches of foreign exchange regulations.

In an official statement published on its official website, the central bank confirmed that it took action under its statutory mandate to supervise the foreign exchange business. The MMA urged all operating entities to comply strictly with the governing financial laws and warned that it will continue taking legal steps against any parties found violating the regulatory framework.

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The enforcement action coincides with a broader regulatory overhaul implemented by President Muizzu’s administration to curb the local foreign currency black market and stabilize declining usable reserves. Revised regulations, which took effect on 1 October 2026, enforce strict mandatory foreign currency conversion rules across commercial sectors.

Under these updated rules, Category A establishments—comprising resorts, integrated resorts, and private islands—must convert 40 per cent of their monthly foreign exchange earnings through domestic banks, doubling the previous 20 per cent requirement. Non-tourism businesses generating high revenue face a raised qualification threshold of USD 25 million per year, up from USD 15 million. Foreign-owned firms in this category must convert 40 per cent of foreign currency revenues, whereas wholly Maldivian-owned enterprises receive a concession requiring them to convert only seven per cent of total foreign currency earnings to ease operational costs.

Category B operators, including guesthouses, hotels, and safari vessels, must exchange either USD 25 per tourist or 20 per cent of monthly earnings through the local banking system. Furthermore, the updated regulations prohibit advertising foreign currency exchange above official bank rates and ban public dissemination of parallel market rates. Penalties for non-compliance carry fines reaching up to MVR 500,000 for individuals and up to MVR 5,000,000 for corporate entities.