The Maldives Monetary Authority (MMA) announced yesterday the cancellation of 163 previously issued money exchange licences as part of the implementation of the newly introduced Rules on Money Exchange Business.

This step is aimed at addressing foreign exchange issues and ensuring better regulation of the sector. By the application deadline, 98 individuals had submitted requests for licences under the updated regulations, which are designed to ensure transparency and efficiency in the money exchange business.

Under the new framework, two tiers of money exchange licences are available. Tier 1 licences are for businesses involved in buying and selling foreign currencies, while Tier 2 licences are for those engaged exclusively in foreign currency sales. The MMA opened applications for these licences on 3 October, with changes that affect both fees and operational requirements.

Previously, 212 individuals held money-changing licences. However, under the new rules, 99 commercial businesses and 64 resorts saw their licences revoked. Among those applying for renewals, 35 commercial entities and 14 resorts met the criteria for consideration.

The fee structure under the updated system requires businesses applying for Tier 1 licences to pay an application fee of MVR 20,000 and an annual fee of MVR 24,000. These businesses are also limited to a maximum daily cash transaction of MVR 50,000 per customer. For Tier 2 licences, applicants must pay USD 1,300 as an application fee, USD 1,800 as an annual fee, and maintain a security deposit of USD 50,000.

To ensure credibility and compliance, the new rules impose several conditions. Money exchange businesses must operate exclusively in buying and selling foreign currency and are required to submit audited financial reports. They must also appoint a compliance officer accountable to the MMA and ensure that their workforce consists solely of Maldivian nationals.

The MMA has capped the total number of new licences at 50. If applications exceed this number, licences will be granted based on an evaluation of eligible applicants. The authority has stressed that these changes are intended to enhance transparency and foster public confidence in the sector.

While the MMA is working to issue the new licences promptly, no specific timeline has been provided. These changes mark a significant move towards stricter regulation and a more transparent approach to addressing foreign exchange challenges in the Maldives.