Govt. publishes regulation on registration for USD exchange

Maldives Monetary Authority (MMA) has published the regulation on registration for businesses under the Foreign Currency Act.

The Foreign Currency Act came into effect on January 1^st. The regulation formulated under the legislature mandates certain businesses to register with the central bank for the implementation of mandatory USD exchange as stipulated in the Act.

Businesses that are required to register under the regulation are as follows:

Businesses that provide goods and services in the tourism sector

Businesses, excluding financial institutions, that earn at least USD 15 million in a calendar year

According to the regulation, businesses that have earned at least USD 15 million last year must file for registration with MMA before February 3^rd.

Any business that earns at least USD 15 million in a calendar year at any time later will be required to register with MMA before January 31^st of the following year.

Tourism sector businesses that are commencing operations after January 1^st of this year will have to register with MMA within 30 days of the date of commencement.

Registrations under the regulation can be completed via MMA’s Foreign Exchange Portal.

Foreign Currency Act gives tourist establishments a choice between exchanging the fixed amount per tourist as required under the regulation or exchanging 20 percent of the monthly revenue.

It categorizes tourist establishments into two types.

Category-A tourist establishments are classified as registered resorts, integrated tourist resorts and private islands. Such establishments will need to either exchange USD 500 per tourist or 20 percent of the monthly revenue.

Category-B tourist establishments are classified as registered tourist vessels, tourist hotels and tourist guesthouses. Such establishments will need to either exchange USD 25 per tourist or 20 percent of the monthly revenue.

Meanwhile, tourist establishments will not be required to exchange USD for tourists who spend less than 24 hours at the establishment, tourists under the age of 12 years and tourists hosted by establishments on a complimentary basis, and tourists hosted by the government.

The legislature also requires non-tourism businesses excluding financial institutions that generate over USD 15 million in annual USD revenue to exchange a percentage of its monthly revenue. Such businesses will also need to register with the MMA.