The People’s Majlis has passed significant amendments to the Foreign Currency Act, criminalizing the sale of foreign currency above official rates set by the Maldives Monetary Authority (MMA) and introducing heavy penalties for those promoting such transactions.

The bill, passed with 47 votes in favor and 12 against, marks a major legislative shift to stabilize the national currency. Under the new regulations, individuals found selling or attempting to sell foreign currency at rates exceeding the MMA’s official fix will face fines ranging from MVR 25,000 to MVR 1 million. Furthermore, advertising such transactions on digital platforms or through other mediums will attract fines between MVR 25,000 and MVR 500,000. Corporate entities found in violation of these laws can be penalized with fines up to MVR 5 million.

A critical component of the amendment, proposed by Holhudhoo MP Abdul Sattar Mohamed, mandates that ‘Category-A’ businesses within the tourism industry must convert 40% of their foreign currency revenue into Maldivian Rufiyaa (MVR). This is a substantial increase from the previous requirement, which was set at 20% of total revenue or $500 per tourist.

The legislation also raises the threshold for mandatory deposits. Any entity generating at least $25 million in foreign currency revenue annually is now required to deposit those funds into an MMA-authorized bank. Additionally, the law stipulates that only MMA-licensed parties are legally permitted to conduct currency exchange businesses in the Maldives. Bank account details of these entities must also be shared with the central bank for transparency and oversight.