In Brief: New Regulation on Foreign Currency Registrations
The Maldives Monetary Authority (MMA) has recently gazetted the Regulation on Registrations Under the Foreign Currency Act (the "Regulation") on 9 January 2025. This Regulation outlines the procedures for registering under the Foreign Currency Act (Forex Act).
Who Needs to Register?
The following entities are required to register with the MMA:
Tourism Sector Entities: Businesses selling goods and services within the tourism sector.
High-Income Entities: Any non-financial institution with annual foreign currency revenue exceeding USD 15 million (or equivalent) from the sale of goods and services in the previous calendar year.
Registration Deadlines
It's crucial to be aware of the registration deadlines, which vary depending on the type of entity:
Existing Tourism Sector Entities: Those that did not register under the previous regulation must submit their applications by 13 January 2025.
New Tourism Sector Entities: Businesses commencing operations after 1 January 2025 have 30 days from their start date to register.
High-Income Entities (2024 Revenue): Entities that met the USD 15 million threshold in 2024 must register by 3 February 2025.
High-Income Entities (Future Revenue): Entities reaching the threshold in any calendar year after 1 January 2025 must register by the end of January in the following year.
Registration Process
To register, entities must submit an application through the MMA's Foreign Exchange Registration Portal, including the following documents:
Business registration copy
Operating license copy
GST registration copy
Green Tax registration certificate copy (if applicable)
Identification document for the responsible person
Resolution appointing a responsible person (using the MMA's format)
Any other documents required by the MMA
The MMA aims to process complete applications within 10 working days. If an application is incomplete, the applicant has 10 working days to provide the missing information, after which the MMA will process it within 5 working days.
Important Notes:
Tourism Sector Entities already registered under the previous Foreign Currency Regulation are not required to re-register.
Each registered entity must appoint a primary and an alternative Responsible Person to liaise with the MMA. This can be a director, partner, employee, or officer of the entity.
Non-compliant entities may face penalties ranging from MVR 10,000 to MVR 1,000,000.
Effective Date:
The Regulation came into effect on 9 January 2025.
Need Assistance?
For guidance on registration or any foreign currency matters, contact Nasheed & Co. Law Firm – your trusted legal advisors in the Maldives.
