First Amendment to the General Regulation on Foreign Currency
The First Amendment to the General Regulation on Foreign Currency1 (the “First Amendment”) was gazetted on 10 September 2026 with immediate effect.
The First Amendment sets out procedures for obtaining approval to make foreign currency payments and applying for concessions from mandatory conversion obligations. These procedures follow the changes introduced by the First Amendment to the Foreign Currency Act2 (the “FC Act Amendment”).
Please refer to our previous update for an overview of the General Regulation as initially published.
MMA approval for foreign currency payments for goods and services
The First Amendment clarifies that the approval process for making foreign currency payments for goods and services applies only to the following businesses subject to mandatory conversion obligations:
- Tourism establishments: Category A and Category B Tourism Establishments, including resorts, hotels and guesthouses.
- High-Income Entities: Non-tourism businesses, excluding financial institutions, with foreign currency sales of at least USD25 million or its equivalent during the preceding calendar year.
These businesses must obtain approval from the Maldives Monetary Authority (the “MMA”) before making the relevant payments in foreign currency.
Businesses that are not subject to mandatory conversion obligations can continue to make payments for goods and services in foreign currency and do not need to apply under this approval process.
Other existing exemptions for foreign currency transactions continue to apply automatically. These include salary, dividend, shareholder and related-party payments by foreign currency-earning businesses, which may continue without separate MMA approval.
Suppliers also do not need to obtain separate approval to receive foreign currency payments for goods or services supplied to foreign currency-earning businesses.
Applying for MMA approval
Tourism establishments and High-Income Entities intending to pay for goods and services in foreign currency must apply as follows:
- Payments for the remainder of 2026: Businesses must apply within 14 days after the First Amendment takes effect (i.e., by 25 September 2026) for payments they intend to make during the remainder of the year.
- Annual budgeted payments: Businesses must apply at least 30 days before the start of each year for approval to pay their budgeted expenditure on goods and services in foreign currency.
- Additional payments during the year: Where a business needs to procure goods or services beyond the amounts or purposes already approved, it may submit an additional application to the MMA.
All applications must be submitted in the manner specified by the MMA, together with the information and supporting documents it requires. MMA has informed that such applications must be made through the FX Portal using the cash flow format made available within the portal.
The MMA must notify the applicant of its decision within 14 working days of receiving the application. If approval is refused, the MMA must explain its reasons in writing.
Bi-annual reporting requirement
Tourism establishments and High-Income Entities that receive approval to make foreign currency payments for any goods and services must report their foreign currency transactions to the MMA every six months.
The following deadlines apply:
| Reporting period | Submission deadline |
| January to June | By 28 July of the same year |
| July to December | By 28 January of the following year |
Changes to concession applications
The First Amendment revises the procedures for requesting a reduction in the mandatory conversion amount and introduces rules for applying for an extension of the conversion deadline.
Concession applications to reduce the conversion amount must be submitted no later than three months after the applicable mandatory conversion deadline. The First Amendment also provides that a further application for a reduction may not be submitted while an earlier application remains pending with the MMA.
Businesses seeking an extension of the conversion deadline must follow the policy established by the MMA and provide the information and supporting documents it requires.
In either case, the application must explain why relief is needed and specify the period for which it is requested. That period must not exceed six months.
The General Regulation continues to provide that submitting a concession application does not permit an applicant to leave its conversion obligations unfulfilled while awaiting the MMA’s decision.
Changes applicable to High-Income Entities
The First Amendment aligns the General Regulation with the increase in the annual foreign currency revenue threshold for High-Income Entities from USD15 million to USD25 million. Whether a business meets this threshold is assessed using the preceding calendar year’s financial statements or GST returns. The rules governing when deposit and conversion obligations cease and resume have also been updated to use the new threshold.
High-Income Entities must also designate foreign currency accounts with MMA-licensed banks for their mandatory deposits, with only one designated account per bank. The relevant bank and account details must be notified to the MMA, and any changes must be notified within seven days.
Effective Date
The First Amendment came into effect on 10 September 2026.
