Parliament committee backs fines of up to MVR 5 million for black-market forex trading

The Public Accounts Committee of Parliament has approved amendments to the Foreign Exchange Act that would introduce fines of up to MVR 5 million for businesses involved in illegal foreign currency trading and penalties of up to MVR 1 million for individuals.

The amendments would also make it an offence to advertise or promote the sale of foreign currency at rates above those set by the Maldives Monetary Authority (MMA).

The government-sponsored bill, which also seeks to raise the threshold for foreign currency-earning businesses required to surrender dollars to local banks, was sent back to the committee after being presented on the Parliament floor.

During the committee’s reconsideration of the bill, Funadhoo MP Mohamed Mamdhooh proposed additional provisions aimed at strengthening penalties for black-market foreign currency trading and the promotion of unofficial exchange rates.

Under the proposed amendment, advertising foreign currency for sale at rates above those determined by the MMA, or publishing material promoting such transactions, would be punishable by a fine ranging from MVR 25,000 to MVR 500,000.

The amendment broadly defines “advertising and promoting” as revealing, publishing, disseminating, repeating or otherwise providing information through digital platforms, media or any other public channel that advertises, encourages or promotes foreign currency trading at rates outside or above the official exchange rate or exchange band published by the MMA.

Stronger penalties would apply to legal entities and registered businesses involved in such offences. Companies found to have participated in illegal foreign currency trading or related activities could face fines ranging from MVR 100,000 to MVR 5 million.

Buying and selling foreign currency outside authorised channels is already illegal in the Maldives, including transactions involving commissions. The proposed amendments would provide clearer statutory penalties and strengthen the legal framework for enforcement against black-market trading and the promotion of unofficial exchange rates.

The bill will now proceed through the remaining stages of the legislative process before it can become law.