Maldives Foreign Currency Act: What Businesses Need to Know About the New Rules

Businesses covered by the Maldives’ Foreign Currency Act face higher conversion requirements and a shorter deadline following an amendment that took effect on 1 September 2026. The first conversion under the new monthly timetable, covering September income, is due by 28 October 2026.

The First Amendment to the Foreign Currency Act (Law No. 32/2024) changes the rules for Category A tourism establishments and large businesses outside the tourism and financial sectors. It also introduces new controls on foreign currency transactions and exchange businesses.

How much must businesses convert?

Category A: Tourism establishments in this category must convert 40% of their monthly gross foreign currency sales through a licensed bank. The previous option to convert USD 500 per tourist has been removed.

Category B: The amount required remains unchanged. These establishments may convert either USD 25 per tourist arrival or 20% of monthly gross foreign currency sales.

Category C: The annual foreign currency revenue threshold for businesses outside the tourism and financial sectors has risen from USD 15 million to USD 25 million. Businesses that meet the threshold must generally convert 40% of their monthly gross foreign currency sales. Those that are wholly Maldivian-owned must convert 7%.

A shorter conversion deadline

Businesses must now complete the required conversion by the 28th of the month after the income was earned. Previously, the deadline was the 28th day of the third subsequent month. For September 2026 income, the deadline is therefore 28 October 2026. The new timetable also applies to Category B, despite its conversion amount remaining unchanged.

Payments and foreign exchange

A business that earns foreign currency must obtain prior approval from the Maldives Monetary Authority (MMA) before paying for goods or services in foreign currency under the amended provision. The supplier’s corresponding receipt of that payment also requires approval.

The amendment requires foreign currency to be bought and sold at rates, or within bands, determined by the MMA. It also establishes a licensing requirement for money-changing businesses. Further regulations will set out the licensing framework and arrangements for businesses that already hold MMA licences.

Bank account details

Businesses subject to the Act’s deposit requirements must place the relevant foreign currency proceeds in an account with a bank licensed or authorised by the MMA. They must also notify the MMA of the account used, in the manner the authority specifies.

Affected businesses should review their conversion calculations, payment procedures and bank account reporting ahead of the 28 October deadline, and monitor the MMA’s implementing rules.