The Maldives Monetary Authority has suspended the licence of one of the country’s money changers and fined it MVR 500,000, the latest in a run of enforcement actions as the central bank presses a crackdown on illegal foreign currency trading.
In a statement published on Sunday, the MMA said it had imposed supervisory measures on MS Finance Currency Exchange Pvt Ltd for breaching the regulations governing money-changing businesses.
A run of enforcement actions
The move follows a series of measures by the central bank this year under the Foreign Currency Act. In August the MMA cancelled the money-changing licence of Express Money Exchange Pvt Ltd, and days later published a list of entities against which it had taken action under the law, together with a compliance report.
In September it cautioned the public against carrying out money-changing transactions with unlicensed parties, and published an updated list of authorised money changers.
The Foreign Currency Act was amended in August, alongside the National Payment System Act, strengthening the authority’s hand.
Against a dollar shortage
The measures come as the country continues to face a shortage of foreign currency. The central bank and enforcement agencies have been working together to stop dollars being sold illegally at inflated rates, searching premises, detaining people and withholding large sums of money. A number of foreign nationals have been arrested over illegal currency trading and over attempts to carry foreign currency out of the country.
The MMA has also acted on supply. In August it increased the amount of US dollars it sells to commercial banks, and in April it repaid a USD 400 million currency swap.