Attorney General Ahmed Usham has expressed confidence that recent government amendments to foreign exchange regulations will yield positive economic changes within the next month, addressing the Maldives' ongoing foreign currency challenges.
The implementation of these crucial amendments to the Foreign Exchange Act officially commenced on 1 September.
Under the newly revised Foreign Exchange General Regulations, resorts operating within the country's tourism sector are now legally mandated to convert 40 percent of their monthly foreign currency earnings through a registered commercial bank established in the Maldives.
Speaking at a press conference held at the President’s Office, Attorney General Usham highlighted the timeline for the transition.
“With this amendment requiring parties earning in foreign currency to convert 40 percent, I believe we will see positive changes over the next month or so. As set out in the law, implementation began on 1 September. So, conversions will be mandatory starting 1 October,” he explained.
In addition to the conversion mandate, the Attorney General warned of a strict crackdown on unauthorised financial activities. He emphasised that selling US dollars at rates deviating from those officially set by the Maldives Monetary Authority (MMA), or operating currency exchange services without an official license or MMA registration, constitutes an illegal business practice. The Attorney General confirmed that the government will take decisive legal action against any individuals or businesses participating in such unauthorised transactions.
The regulatory overhaul comes as the government steps up joint agency efforts to dismantle the parallel foreign currency black market, where US dollars are frequently traded at rates significantly higher than the official rate.
Appealing for cooperation across the business sector, AG Usham urged all parties to strictly adhere to the Foreign Exchange Act, the MMA Act, and existing banking regulations to ensure foreign currency transactions remain transparent, legal, and beneficial to the national economy.