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A new regulation has been publicized, tightening the rules on foreign currency exchange in the Maldives, specifically banning foreign participation in the business.

Under the "Regulation Governing Money Exchange Business," two types of licenses are established: Tier 1 and Tier 2 money exchanging licenses.

Tier 1 Money Exchanging License:

- This license allows companies to buy and sell foreign currency.

- It is issued only to companies established for this purpose, with the requirement that the owner must be Maldivian.

- The license is valid for five years and must be conducted from a dedicated establishment.

- Application fee: MVR 20,000

- Renewal fee: MVR 10,000

Tier 2 Money Exchanging License:

- This license is designated for companies licensed to operate tourist resorts under the Tourism Act.

- It allows these resorts to conduct foreign currency exchanges in collaboration with a bank or a Tier 1 license holder.

- The license duration aligns with the tourist resort's operating license.

- Application fee: USD 1,300

- Renewal fee: USD 650

These measures aim to enhance control over currency exchange practices and ensure that the benefits remain within the local economy.