Advertising or promoting the sale of US dollars on the black market could soon become a punishable offence in the Maldives, with proposed amendments allowing fines of up to MVR 1 million.
The amendment was introduced by Funadhoo MP Mohamed Mamdhooh during a meeting of Parliament’s Public Accounts Committee as lawmakers reviewed proposed changes to the Foreign Exchange Act.
Under the proposed amendment, selling foreign currency at a rate above the official rate determined by the Maldives Monetary Authority (MMA), or attempting to carry out such a transaction, would be treated as a prohibited act.
Individuals found guilty could face fines ranging from MVR 25,000 to MVR 1 million, depending on the seriousness of the offence.
The proposed changes would also specifically target the advertising and promotion of black-market foreign currency sales.
Publishing advertisements, documents or other material encouraging the sale of foreign currency above the official rate would be considered an offence. This would include using digital platforms, online services or other means to publicly share, publish, distribute or promote information related to such transactions.
Those involved in advertising or promoting illegal currency sales could face fines ranging from MVR 25,000 to MVR 500,000.
The amendment also proposes significantly higher penalties where a legally registered business is involved. In such cases, the business could face a fine of between MVR 100,000 and MVR 5 million.
Black-market dollar trading, including the sale of US dollars for a commission outside the permitted framework, is already prohibited in the Maldives. The proposed amendment would strengthen the legal provisions and expand the scope of enforcement to include advertising and promotion.
The Public Accounts Committee has approved the amendment as part of its consideration of the government’s broader bill requiring foreign currency earnings to be deposited and exchanged through Maldivian banks.
The committee’s report on the bill was presented during a recent parliamentary sitting but was subsequently returned to the committee for further consideration. The committee has decided to proceed with the bill in its current form, together with the approved amendment.
