The Maldives Monetary Authority (MMA) has introduced new regulations to strengthen the foreign exchange market's legal framework.

As part of these changes, tourism businesses are now required to exchange a portion of their dollar earnings into Maldivian banks for Rufiyaa.

According to the updated Money Exchange Business Rules, Category A tourism businesses such as resorts, hotels, and vehicles must exchange $500 per tourist each month into Maldivian rufiyaa through a local bank.

Meanwhile, Category B businesses, defined as establishments with 50 rooms or fewer, are required to exchange $25 per tourist.

Exceptions to these requirements may be granted by the MMA in specific situations, such as for tax payments, foreign currency debt repayment, or court-ordered obligations.

Additionally, two types of foreign exchange trading licenses will be issued: a general foreign exchange trading license and a money-changing license.

The foreign exchange trading license will be valid for five years and limited to businesses employing Maldivian citizens.

Each transaction will be capped at MVR 50,000 (or its foreign currency equivalent) per customer per day, and licensees must implement electronic systems to monitor transactions.

Tourist resorts operating under the Maldives Tourism Act can apply for a foreign exchange trading license, which will last as long as their resort permit.

All foreign exchange transactions for these businesses must be conducted through a bank, and receipts must be issued for each transaction, customer details (example: identity card number, passport number, registration number and business registration number if legal entity) and transaction specifics.

Furthermore, the new rules require each licensee to provide a security deposit of $50,000. 

Existing license holders may continue operating under their current licenses until the MMA finalizes reapplication procedures.

Registered tourist service providers will also be able to conduct money exchange activities without an additional license through the MMA.