Maldives Monetary Authority (MMA) has warned the public against conducting foreign exchange transactions with individuals or businesses operating without a valid license, emphasizing that unauthorized currency trading is an offense under Maldivian law.

In a statement, the central bank said foreign exchange activities in the Maldives must be carried out by entities licensed by the MMA under the Foreign Currency Act and the Regulation on Money Changing Business.

The warning follows the Authority’s observation that some parties continue to conduct foreign exchange transactions without the required authorization.

As of September 9, the MMA had issued licenses to 59 entities to operate foreign exchange businesses.

The Authority urged anyone seeking currency exchange services outside commercial banks to verify that the provider holds a valid license before completing a transaction.

The central bank also reminded customers and businesses to ensure that all foreign exchange activities comply with applicable laws and regulations.

The current regulation represents a major update to the framework governing money-changing businesses.

It replaces rules that had remained in place since 1987 and introduces updated requirements aimed at strengthening oversight of the foreign exchange sector.

The new framework is intended to establish modern operating standards and improve regulatory supervision of businesses involved in buying and selling foreign currencies.

The MMA's latest warning comes as authorities continue efforts to bring greater control and transparency to the country's foreign exchange market and curb unauthorized currency trading.