MMA Cancels 163 Money Changer Licenses

The Maldives Monetary Authority (MMA) has revoked 163 money changer licenses after the respective holders failed to reapply under the newly enforced 'Money Changing Business Regulations. The deadline for renewing licenses under these updated rules expired on November 30, 2024.

MMA had issued 212 money changer licenses before the implementation of the new regulations, comprising 134 for commercial businesses and 76 for tourist resorts. However, only 98 applications were submitted within the stipulated period, leading to the cancellation of licenses for 99 commercial businesses and 64 resorts.

Of the existing operators, 49 reapplied successfully, including 35 commercial businesses seeking Tier 1 licenses and 14 resorts applying for Tier 2 licenses. Additionally, 49 new applicants have sought licenses, with 44 applying for Tier 1 and 5 for Tier 2.

Under the new regulations, Tier 1 licenses permit buying and selling foreign currency, with an application fee of MVR 20,000 and an annual fee of MVR 24,000. Under Tier 1, the maximum daily cash transaction limit per customer is MVR 50,000 or its equivalent in foreign currency. Tier 2 licenses, specific to tourist resorts, allow selling foreign currency, requiring a $1,300 application fee and a $1,800 annual fee. Both tiers mandate a $50,000 security deposit.

Furthermore, only Maldivians are eligible for money-changing operations, and all licensed entities must share financial statements with the MMA and conduct transactions through authorized channels.

The revised regulations aim to streamline and regulate the money-changing business in the Maldives, ensuring better compliance and transparency in the financial sector.