Investigation Finds Seven Unlicensed Forex Operators Traded $77 Million

An investigation into seven entities operating unlicensed foreign currency exchange businesses has found that they traded USD 77 million on the black market over a nine-month period, Home Minister Ali Ihusan said on Monday.

Speaking at a press conference at the President’s Office, Ihusan said only 63 registered entities are currently authorised to provide foreign currency exchange services in the Maldives.

He said authorities believe a significant number of individuals and businesses are engaged in unauthorised foreign exchange activities, noting that an investigation into just seven such operators showed they had sold USD 77 million on the black market within nine months.

Ihusan reminded the public that conducting foreign currency exchange without a licence is prohibited under Maldivian law and urged individuals and businesses to refrain from taking part in such transactions.

He said using, conducting business with, or profiting from funds obtained through such criminal activity could constitute money laundering under Maldivian law. Therefore, whether knowingly or unknowingly, those involved could be engaging in money laundering activities.

Ihusan said investigations have also focused on identifying the sources supplying US dollars to unlicensed currency exchange operators.

According to the minister, the entities investigated so far do not import dollars into the Maldives and do not operate businesses that generate significant dollar revenue of their own.

Authorities have therefore been tracing the source of the foreign currency handled by these operators, with investigations indicating that resorts are among the primary suppliers of dollars to the black market.