The Maldives Monetary Authority (MMA) has suspended the money-changing licence of MS Finance Currency Exchange Private Limited and imposed a fine of MVR 500,000 for breaching regulations governing foreign currency exchange activities.
The supervisory action was taken on 18 October 2026, with the company’s money-changing licence suspended from the same date. The MMA has confirmed that MS Finance is currently not authorised to conduct licensed money-changing operations. The central bank has urged all businesses and individuals engaged in foreign currency transactions to comply fully with the country’s laws and regulatory requirements, while reiterating that enforcement action will continue against parties found operating outside the legal framework.
The action comes as the administration of President Dr Mohamed Muizzu strengthens the Maldives’ foreign exchange framework with the objective of increasing the availability of foreign currency through the formal banking system, improving transparency in currency transactions and reducing reliance on the unofficial foreign exchange market.
The Government introduced significant amendments to the Foreign Currency Act in 2026, strengthening the MMA’s authority over foreign exchange activities and establishing clearer requirements for businesses earning substantial revenues in foreign currency. The amendments were ratified by President Dr Muizzu on 31 August 2026 and came into force on 1 September 2026.
The resort industry, which remains the largest generator of foreign currency earnings in the Maldives, is a central component of the revised framework. Category A tourism establishments, including tourist resorts, integrated tourist resorts, private islands and resort hotels, are now required to convert 40 percent of their monthly gross foreign currency sales through banks licensed by the MMA. The earlier option allowing resorts to meet their obligation by converting USD 500 per tourist has been discontinued.
The revised requirement reflects the significant contribution made by Maldives resorts to the national economy. The country’s internationally renowned resort sector attracts visitors from across the world and generates substantial foreign currency revenues through accommodation, dining, recreation, transportation and other tourism-related services. By directing a larger share of these earnings through domestic banks, the Government expects to improve foreign currency liquidity within the formal financial system and make foreign exchange more accessible for businesses and the wider public.
Category B tourism operators, including tourist hotels, guesthouses and safari vessels, continue to have the option of converting either USD 25 per tourist arrival or 20 percent of monthly gross foreign currency sales through the banking system.
The reforms also raise the annual foreign currency income threshold for qualifying non-tourism businesses from USD 15 million to USD 25 million. Businesses exceeding the threshold are generally required to convert 40 percent of monthly gross foreign currency sales, while enterprises that are fully Maldivian-owned are provided with a reduced conversion requirement of seven percent. The differentiated arrangement is designed to support local businesses while strengthening the flow of foreign currency through regulated financial channels.
Under the strengthened legal framework, foreign currency may only be bought and sold at rates or within permitted bands determined by the MMA, while businesses providing foreign exchange services must hold a valid licence from the Authority. Selling, attempting to sell or advertising foreign currency outside the permitted framework can result in substantial penalties, including fines of up to MVR 1 million for individuals and MVR 5 million for legal entities.
The MMA’s latest action against MS Finance highlights the Government’s continued focus on strengthening compliance, protecting the integrity of the financial system and ensuring that foreign currency transactions are increasingly conducted through transparent and regulated channels.
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