BML Unveils Online Platform for Mandatory USD Exchange for Tourism Sector

Bank of Maldives (BML) on Tuesday unveiled a convenient online platform for the tourism sector to ease the process of exchanging foreign currency earnings under the new Foreign Currency Law (Forex Law).

BML said the mandatory exchange service is available through its Internet Banking platform for resorts, hotels, guesthouses, and other tourism-related businesses.

According to BML, businesses will be able to view a comprehensive activity report that enables them to track and review all mandatory transactions conducted through the bank. Additionally, USD will be exchanged at the Bank’s selling rate of MVR 15.42, it added.

This online platform aims to streamline mandatory exchanges for the tourism sector, enhancing businesses to manage their currency exchanges conveniently and effectively while ensuring compliance with regulatory requirements, BML said.

The new law, which mandates tourism facilities to exchange a portion of their foreign earnings through local banks was ratified by President Dr Mohamed Muizzu in December.

The law has introduced a framework for businesses operating under Maldivian law to exchange foreign currency obtained from realised sales proceeds. These businesses are required to exchange their foreign currency with banks operating in the Maldives, which, in turn, must sell a specified percentage of these exchanges to the MMA.

Businesses are mandated to register at the MMA and submit regular sales reports on guests.

The law aims to establish clear guidelines for managing foreign currency transactions in the Maldives and regulate currency exchange practices. The legislation mandates that all domestic transactions must be conducted in Maldivian Rufiyaa, prohibiting the use of foreign currencies except under specific circumstances defined by law.

It also forbids charging Maldivian nationals for any services provided or acquired within the Maldives in any currency other than the Rufiyaa.

Based on their operations and revenue, businesses are categorised into three distinct groups and must exchange foreign currency as follows:

• Category A: Establishments such as resorts, integrated tourist resorts, private island resorts, resort hotels, or any such business that falls under this category must exchange either USD500 per tourist per month or 20 percent of their gross monthly sales with banks.

• Category B: Establishments such as tourist hotels, tourist guest houses, and tourist vessels are required to exchange USD25 per tourist per month or 20 percent of their gross monthly sales with banks.

• Category C: This category includes businesses not falling under Categories A or B but with annual sales or purchase transactions exceeding USD15 million in foreign currency; they must exchange 20 percent of their gross sales with banks.

The Act further requires businesses operating in the tourism sector or those exceeding the USD15 million thresholds in foreign currency transactions annually to register with the MMA and transfer their realised foreign currency sales proceeds to a local bank.