The Maldives Monetary Authority (MMA) has urged the public not to conduct transactions with parties engaged in foreign exchange trading without a licence, stating that operating an unlicensed foreign exchange business is an offence.
In a statement issued by the MMA, the Authority said that under the Foreign Currency Act and the Regulation on Money Changing Business, foreign exchange trading in the Maldives must be conducted under a licence issued by the Authority. However, the MMA said it has observed that some parties are carrying out foreign exchange transactions without a licence.
As this constitutes an offence under Maldivian law, the MMA has urged all parties not to conduct transactions with those engaged in foreign exchange trading without a licence from the Authority.
The MMA said that, as of 9 September, licences to operate foreign exchange businesses had been issued to 59 parties. Therefore, the Authority has also urged anyone conducting a foreign exchange transaction with a party other than a bank to ensure that the transaction is carried out with a party holding a valid foreign exchange business licence, and to conduct all related activities in accordance with the relevant laws and regulations.
The new Regulation, which the MMA recently began enforcing, replaces the regulations that had been in effect since 1987. The main purpose of the new regulation is to strengthen the regulation and oversight of the foreign currency buying and selling business and to establish modern principles for operating such businesses.