Ministry of Economic Development has implemented strict measures to stop private businesses controlled by foreigners.
The new regulations on private businesses aim to impose strict measures on businesses registered under the names of Maldivians that benefit foreigners. The regulation introduces procedures for the registration, operation, and cancellation of private businesses and stipulates that they are controlled by foreigners. Such businesses are a common problem in the Maldives as many shops and market stalls are run by foreigners. The new regulations aim to stop any private business that directly or indirectly benefits a foreigner and take action against the Maldivian who registered the business. The economic ministry will take action if it receives evidence that revenue was being deposited to a foreigner’s bank account and will impose a fine of USD6,500 and ban the owner from registering a new business for a period of five years.
Additionally, the ministry will publicly announce the reason for terminating the business, and banks and other parties are required to notify the Financial Intelligence Unit of the Maldives Monetary Authority (MMA) if a foreigner is suspected to be transferring funds from the business abroad. The ministry will also verify the permissions of businesses and take action if goods are placed outside of the premises by imposing a fine of USD65-6,500.
Furthermore, the regulations require businesses to be registered online or via the local council, after which the ministry will reserve the name of the business for 14 days. Private businesses can be registered for a period of 10 years and will be liable to inspections. Businesses that are found to have violated the regulations will be issued a fine of USD65-6,500.
The statistics show that 22,000 businesses are registered in the Maldives and the ministry plans to hold awareness programmes to help businesses adhere to the new regulations.