The government has introduced the 'Foreign Currency' Bill to Parliament, aiming to establish a comprehensive legal framework for foreign exchange transactions in the Maldives. The bill, presented by Ibrahim Falah, MP for the Inguraidhoo constituency, has undergone its first reading in Parliament.
The bill seeks to regulate foreign currency transactions, including the import and export of foreign currency, possession, deposit, and exchange within the Maldives. It also introduces strict penalties and business permit restrictions for violators.
Key provisions in the bill includes:
- Categorisation of Tourism Businesses: Businesses registered with the Maldives Inland Revenue Authority (MIRA) as part of the tourism sector will be divided into two categories:
- Category A: Resorts, integrated tourist resorts, private islands, and resort hotels. These establishments must deposit USD 500 per tourist at a local bank.
- Category B: Guesthouses and tourist vehicles. These businesses must deposit USD 25 per tourist monthly.
Exceptions include tourists staying less than 24 hours, children under two years old, and complimentary stays. Tourist vehicles registered and operated abroad are exempt.
Penalties for Non-Compliance are outlined as follows:
- Fines ranging from MVR 10,000 to MVR 1 million based on the severity of violations.
- Daily fines of up to 25 per cent of the undeclared foreign currency until compliance is achieved.
- Withholding of business permits for defaulters failing to pay fines within 90 days.
- Banks failing to deposit required amounts may face penalties of up to 5 per cent of the undeclared foreign currency.
MIRA will investigate suspected violations, review accounts, and impose penalties. The authority can also approach the courts to recover unpaid fines.
The bill aims to strengthen the regulation of foreign currency transactions, ensuring compliance and economic stability in the Maldives.
