The Maldivian Government has introduced the Foreign Currency Bill to Parliament, aiming to establish a comprehensive legal framework for managing foreign exchange transactions in the country.

The bill, presented by Ibrahim Falah, Member of Parliament for Inguraidhoo, was read for the first time in Parliament on Monday.

The proposed legislation seeks to regulate various aspects of foreign currency transactions, including the import, export, possession, deposit, and exchange of foreign currency within the Maldives. With a particular focus on businesses in the tourism sector, the bill also includes strict penalties for violations and aims to promote economic stability through increased accountability.

Key Aspects of the Foreign Currency Bill include:

Tourism Sector Regulations

The bill introduces a categorisation system for tourism businesses registered with the Maldives Inland Revenue Authority (MIRA), assigning two groups:

There are exemptions for tourists who stay for less than 24 hours, children under two, and complimentary stays. Tourist vehicles registered and operated abroad are also exempt from these requirements.

Foreign Exchange Deposit Rules

Businesses with an annual income of up to USD 15 million must deposit at least 25 per cent of their foreign exchange earnings into local banks each month. This requirement is designed to enhance financial transparency and ensure compliance with the new regulatory framework.

Penalties for Non-Compliance

The bill includes severe penalties for those who fail to comply with the regulations:

The Maldives Inland Revenue Authority (MIRA) will be responsible for investigating violations, reviewing accounts, and imposing fines. The authority can also take legal action to recover unpaid fines through the courts.

This bill is a key step in regulating foreign currency transactions and ensuring that the Maldives maintains economic stability and transparency.