The Maldives Monetary Authority (MMA) has cautioned the public against carrying out foreign exchange transactions with individuals or businesses that do not hold a valid licence, reminding that conducting foreign exchange trading without authorisation is an offence.
In a statement, the MMA said foreign currency buying and selling activities in the Maldives are required to be conducted under a licence issued by the Authority in accordance with the Foreign Currency Act and the Regulation on Money Changing Business.
The regulator said it has identified instances where foreign exchange transactions are being conducted by parties without the required licence.
The MMA therefore advised the public to verify the licensing status of any foreign exchange operator before conducting transactions. Those dealing with entities other than banks have been specifically urged to ensure that the service provider holds a valid foreign exchange business licence and that all transactions comply with the applicable laws and regulations.
As of September 9, the MMA had issued foreign exchange business licences to 59 parties.
The warning comes following the implementation of a new regulation governing money-changing activities. The regulation replaces rules that had remained in force since 1987 and is intended to strengthen regulatory oversight of the sector while introducing updated standards and requirements for foreign currency buying and selling businesses.
