The Maldives Monetary Authority (MMA) has reminded businesses that must convert part of their foreign currency income to Maldivian rufiyaa to complete the conversion before the monthly deadline, warning that those who fail to do so will be named publicly.

In a press release dated 26 October, the MMA said that under Section 10(e) of the Foreign Currency Act (Law No. 32/2024), foreign currency income received in a calendar month must be converted before the 28th day of the following month. Under that rule, conversions for income received in September are due before Wednesday, 28 October.

The MMA said the names of entities that do not meet the deadline would be disclosed in line with the policies set by the authority.

Who must convert, and how much

  • Category A tourism establishments (resorts, integrated resorts, private islands, resort hotels and similar establishments) must convert 40% of the gross sales they receive in foreign currency each month.

  • Category B establishments (tourist vessels, tourist hotels and guesthouses) can choose either USD 25 for each tourist arrival in the month or 20% of gross foreign currency sales.

  • Other businesses, excluding financial institutions, that earned at least USD 25 million in foreign currency in the previous calendar year must convert 40%, or 7% if they are 100% Maldivian-owned.

These rates were set by the first amendment to the Act, Law No. 13/2026, which took effect on 1 September. Under the MMA's General Regulation on Foreign Currency, TGST, green tax and service charge can be deducted when calculating monthly gross sales.

Conversions must be made at a bank, and the business must give the bank its taxpayer identification number, business registration number, name and the month the conversion relates to. Details of the conversions must then be submitted on the MMA's Foreign Exchange Portal within 10 working days of the end of the month.

Penalties

Under Section 15 of the Act, the MMA can fine a business that fails to convert the required amount up to 0.5% of the sum it should have converted that month, and may charge the fine daily until it complies. Other breaches of the Act or its regulations carry fines of MVR 10,000 to MVR 1 million, depending on severity.

If a fine is not paid within 90 days of notification, the MMA can instruct state institutions to suspend the business's permits. The Act also allows businesses that would be left short of foreign currency for obligations such as taxes, foreign debt or court orders to apply to the MMA for a smaller conversion amount or more time.