Parliamentary Committee Moves to Criminalise Unauthorised US Dollar Trading

The Parliamentary Public Accounts Committee has approved sweeping amendments to the Foreign Exchange Act, effectively criminalising the sale and advertisement of U.S. dollars at rates that deviate from those set by the Maldives Monetary Authority (MMA). The bill, which was re-referred to the committee for review, introduces a strict tiered penalty structure aimed at curbing the unregulated parallel market. Under the revised legislation, individuals or entities selling, or attempting to sell, foreign currency outside official MMA bands will face fines ranging from USD 1,620 to USD 64,800, depending on the severity of the violation. The measure also extends to marketing practices. Any person found advertising or promoting transactions at non-compliant rates could be fined between USD 1,620 and USD 32,400. Corporate offenders face significantly higher stakes, with penalties for companies buying or selling foreign exchange at unauthorised rates ranging from USD 6,480 up to USD 324,200. Funadhoo MP Mohamed Mamdhooh, who moved the amendments, emphasised that a regulated exchange rate system is vital for protecting the Maldives' tourism-dependent economy. He argued that these measures are necessary to prevent profiteering and ensure a fair market for consumers. Beyond the penalties for unauthorised trading, the amendment introduces stringent reporting requirements for high-revenue entities. Any entity that generated at least USD 25 million in foreign revenue during the previous calendar year must now deposit all foreign-currency earnings into an account at an MMA-licensed bank and report these details to the authority. Furthermore, Category-A tourism establishments will now be required to convert 20 percent of their monthly foreign-currency earnings into Maldivian Rufiyaa (MVR), a move designed to increase the liquidity of the local currency and further stabilise the national economy.