- September revenue must be deposited by 28 October
The Maldives Monetary Authority (MMA) has stated that it will disclose the names of businesses that fail to deposit foreign currency earnings in accordance with the Foreign Currency Act.
Following amendments to the Foreign Currency Act, the MMA published the revised legislation in the Government Gazette in September this year. Under the amendments, resorts operating in the tourism sector are required to deposit 40% of their monthly revenue into a bank established in the Maldives.
The MMA has reminded businesses earning foreign currency of their obligation to comply with the deposit requirements stipulated under the law.
In a press release, the authority stated that foreign currency earnings generated in each calendar month must be deposited by the 28th of the following month. It also urged all relevant businesses to comply with the requirements, warning that the names of those failing to meet their obligations by the deadline would be disclosed in accordance with established procedures.
Previously, under the Foreign Currency Act, the deadline for depositing foreign currency earnings was the 28th day of the third month following the month in which the revenue was earned. For example, earnings generated in September had to be deposited by 28 December.
Under the revised legislation, the deadline has been brought forward to the 28th day of the immediately following month. Accordingly, foreign currency earnings generated in September must now be deposited by 28 October.
The MMA has also amended the regulations governing registration under the Foreign Currency Act. Previously, businesses outside the tourism sector were required to deposit foreign currency earnings if their annual revenue reached USD 15 million. Under the revised legislation, this threshold has been increased to USD 25 million.
The authority has incorporated these changes into both the registration regulations and the general regulations governing foreign currency transactions.
In addition, the amended regulations require businesses to include details of a designated account for depositing foreign currency earnings when registering, in line with the requirement under the law to maintain a specific account for this purpose.
