Maldives Bans Business Visa Conversions to Stop Exploitation of Work Permits

The Ministry of Homeland Security, Labour and Technology has banned the conversion of business visas into work permits to stop the systemic exploitation of the country's immigration laws. Effective September 15, 2024, foreigners entering the Maldives on business or special visas are prohibited from switching to a work permit while remaining in the country. Deputy Minister Ahmed Asad explained that business visas were designed for skilled professionals requiring short-term stays. However, the government discovered that some companies were using these visas as a shortcut to bypass standard work permit procedures. According to the Deputy Minister, some individuals and entities had even turned this loophole into a lucrative business, charging third parties to facilitate illegal employment arrangements. Under the new regulations, any foreign national intending to work in the Maldives must obtain a Work Permit Entry Pass before arriving. This shift aims to ensure that all foreign labor enters the country through transparent and legal channels, preventing the unregulated conduct of business by foreign nationals. In a parallel move to protect migrant laborers, the government has overhauled salary payment procedures. Employers are now required to deposit salaries directly into bank accounts held in the worker's own name. This measure aims to eliminate the lack of transparency associated with cash payments, which often left workers with no verifiable proof of payment. Companies that fail to comply with these payment rules face severe penalties, including fines, a reduction in their labor quota, or being blacklisted from the Xpat system. These policy changes are part of a broader government crackdown on illegal residency. Following the completion of a national biometric data collection exercise, authorities have stepped up deportation efforts. The Ministry revealed that the current administration has already repatriated more than 12,000 foreign nationals who were residing in the Maldives in violation of regulations.