The Maldives Monetary Authority (MMA) has announced that it is open for public comments on the Foreign Currency Bill.

In an official statement, MMA confirmed that the drafted bill has been sent to various stakeholders for review. However, because the bill also affects the public, a public comment period has been opened to allow for feedback.

The drafted bill mandates that all transactions, unless exempt, must be conducted in Maldivian Rufiyaa. Exempt transactions include dividend payments and share exchanges by companies earning foreign currency, and duty-free transactions in duty-free stores.

Entities operating in the tourism industry and registered under MIRA, as well as other entities earning more than USD 20 million annually, are required to transfer their foreign currency earnings to a Maldivian bank. This transfer must be completed by the 28th day following the third month of the receipt of earnings.

Under this bill, tourism establishments are divided into two categories: Category A, which includes resorts, private islands, and integrated tourist resorts, and Category B, which includes guest houses and tourist vessels.

Category A establishments are required to exchange USD 500 per guest no later than the 28th day of the third month following the earnings. Similarly, Category B establishments must exchange USD 25 per guest by the same deadline.

Additionally, individuals or businesses earning over USD 20 million annually are required to exchange an amount, as specified by the act, which will not exceed 25 per cent of their foreign currency earnings.

Tourists exempt from the bill include tourists who stay for 24 hours or less, children under the age of 2, and those who stay at the establishment for free.

The bill also introduces penalties for entities not complying.

The deadline for commenting on the bill is 1st December 2024, at 14:00. Interested parties can email f[email protected]

Further information on the bill can be obtained on the MMA website.