Tuesday 26th Oct 2021
Dhivehi Edition
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People's Majilis

Motion Filed to Reduce Outflow of Wealth from Maldivian Economy

MP Ahmed Haroon (Manadhoo) filed a motion to the Majlis to seek out a quick solution to the significant outflow of wealth generated through business conducted in the Maldives from the Maldivian economy.
MP Haroon stated that given the great downturn the global economy is facing due to the COVID-19 pandemic, the Maldives would also face several economic challenges. Given the delicacy of the situation, MP Haroon stated that wealth generated from businesses conducted within the Maldives has not sufficiently entered into the Maldivian financial system.
He mentioned that there were many POS systems in use in the country that utilizes banking services provided by foreign banks, and he also mentioned that many tourists booked their stays in the Maldives through foreign banks, as well.
MP Haroon said that as a result, the Maldivian State did not receive the full revenue that it could have received through fees and taxes from that business transaction.
"MIRA's records show that trade worth USD 4.1 billion worth had taken place in the Maldives in 2019. However, there is no way of knowing how much of that sum entered the country or exited the country", said MP Haroon.
The motion had highlighted some possible solutions. The motion had proposed banning the use of POS systems within the Maldives that were not issued by a bank that had been registered with the Maldives Monetary Authority. He also said that even revenues from online trading should be done through the Maldivian financial system.
In addition, the motion called for revising the existing legal framework to enforce these principles, if necessary.