Bank of Maldives to Block Overseas Card Use for Local Residents

The Bank of Maldives (BML) is implementing new restrictions to prevent the overseas use of debit and credit cards by individuals physically present within the Maldives. The move aims to curb the depletion of foreign currency reserves and ensure that US dollars remain available for essential public needs. During a press conference, BML CEO Mohamed Shareef explained that the bank has observed a significant imbalance where the volume of US dollars sold by the institution has exceeded the amount purchased. This shortage has prompted the bank to target a specific loophole: the use of Maldivian-issued cards for transactions and ATM withdrawals abroad by people who have not left the country. To enforce these rules, BML will integrate its digital systems with Maldives Immigration. This synchronization will allow the bank to verify a cardholder's location in real-time, blocking overseas transactions if the account holder is recorded as being inside the Maldives. Shareef noted that this measure will specifically target cases where individuals lend their cards to others for illicit overseas withdrawals, thereby ensuring a fairer distribution of available foreign currency among all citizens. Recognizing the potential impact on vulnerable groups, the bank has introduced specific exceptions for Maldivian students studying abroad. Students who do not yet possess their own accounts and currently rely on a guardian's card will be granted a grace period of three months. During this transition, a designated spending limit of up to USD 1,200 will be applied to these guardian cards to prevent abuse while maintaining essential support. BML stated that the process for issuing dedicated student cards—which will include additional benefits—typically takes up to three months. The bank assured the public that it is working to implement these technical integrations swiftly to avoid any unnecessary disruption to legitimate card usage.