The Maldives Monetary Authority (MMA) has revoked the money-changing licence of Express Money Exchange Pvt Ltd after the company was found to have conducted illegal foreign exchange transactions.
The central bank said the decision was taken after the company was found to have breached the Regulation on Money Changing Business.
The MMA has warned that individuals and businesses involved in unauthorised foreign exchange dealings will face action, with enforcement agencies to be involved where necessary.
The move comes as authorities step up efforts to tackle the black-market trade in US dollars, where currency is sold at rates above the official rate.
Meanwhile, Parliament’s Public Accounts Committee has approved amendments to the Foreign Exchange Bill that would introduce penalties for advertising or publicly sharing black-market dollar prices.
Those found advertising or promoting foreign currency sales outside the permitted rates could face fines of up to MVR 500,000, while individuals involved in buying or selling currency at inflated black-market rates could face penalties of up to MVR 1 million.
Former Finance Minister Ahmed Mohamed has questioned whether tougher penalties are needed, saying similar punishments already exist under the MMA Act.
Ahmed argued that the bigger issue is enforcement, rather than the lack of legal provisions.
The MMA’s latest action comes as authorities move to strengthen enforcement against illegal currency trading and bring greater control to the country’s foreign exchange market.
