Maldives strengthens enforcement against unauthorized foreign business operations
The government has intensified efforts to curb illegal business activities conducted by foreign nationals, with authorities to closely monitor bank transaction patterns and cash flow linked to such operations.
Minister of Economic Development and Trade, Mohamed Saeed, announced the measures during a press conference today, stating that a dedicated task force has been established to identify and investigate unauthorized foreign-led businesses across the Maldives.
According to the Minister, since the task force commenced operations on November 29 last year, a total of 409 complaints have been received. These reports prompted inspections of 242 establishments, resulting in the closure of 102 locations.
Of these, 57 businesses were permanently shut down due to regulatory violations, while 47 salons and spas were also ordered to cease operations.
Meanwhile, 67 establishments were allowed to resume business after meeting compliance requirements.
Highlighting a common pattern uncovered during investigations, Minister Saeed said:
When we investigate reports of a foreign-run business, we often find that the legal owner is a Maldivian. However, the local owner may have leased the business or placed a foreign national at the counter. Consequently, the local community perceives the establishment as an enterprise operated by a foreigner
He stated
He explained that in such cases, authorities assess whether the foreign individual managing the business holds valid legal status. Where violations are identified, enforcement action is taken by Maldives Immigration.
The Minister further revealed that the government is expanding its approach by examining financial transactions associated with these businesses, particularly to determine whether revenues are being channeled through personal bank accounts of foreign nationals.
In the near future, we will be able to ascertain whether these funds are circulating through foreign accounts and identify the extent of the linkages within these business networks
he added
Minister Saeed noted that the process involves coordination with key institutions, including the Maldives Inland Revenue Authority (MIRA), the Maldives Monetary Authority (MMA), and commercial banks.
While this collaboration may result in procedural delays, he emphasized that efforts are ongoing and progressing steadily.
The initiative forms part of broader government measures aimed at strengthening regulatory oversight and ensuring that business operations within the Maldives remain compliant with national laws.
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