The Public Accounts Committee has passed a motion to amend the Foreign Currency Act to make advertising the sale of USD on the black market a criminal offence, punishable by a fine of up to MVR 1 million.
The report by the Public Accounts Committee on its review and decision regarding the bill submitted by the government to amend the Foreign Exchange Act, which mandates the deposit and exchange of foreign currency revenues in Maldivian banks, was presented during yesterday’s sitting of Parliament, but was sent back to the committee. The report formulated by the Public Accounts Committee decided to pass the bill as it stands.
The amendment was filed by Funadhoo Constituency MP Mohamed Mamdhooh during today’s Public Accounts Committee meeting.
The amendment reads as follows:
“If any party attempts the sale of foreign currencies at a higher rate than the official rates determined by the authority with the use of any resource, or if any party completes such a transaction, it is considered a prohibited act. The punishment for such a crime is a penalty between MVR 25,000 and MVR 1 million after taking the severity of the crime into account.”
Advertising will also result in penalization
As per Mamdhooh’s amendment, the advertising of foreign currency sales at a rate higher than the amount determined by the Maldives Monetary Authority (MMA) and the publishing of documents that encourage such an act are also crimes.
The punishment for the crimes are a penalty ranging between MVR 25,000 and MVR 500,000.
USD sales via the black market is prohibited. It is illegal to conduct USD sales with a commission. With the amendment, legal enforcement will be further empowered.
According to the amendment, “advertising and promoting” refers to the utilization of a digital resource or platform or any other option in publicly sharing, publishing, spreading, repeating and providing such information in regards to advertising or encouraging foreign currency sales at a higher rate or outside the rate or rates related to businesses determined by MMA.
Any individual or individuals who commit such a crime and a legally registered business is involved in the crime, they will be penalized for an amount between MVR 100,000 and MVR 5 million, stated by the bill.
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