Regulation on Registrations Under the Foreign Currency Act

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The Regulation on Registrations Under the Foreign Currency Act1 (the “ Regulation”) was gazetted on 9 January 2025.

The Regulation establishes the procedural requirements and administrative process for the registrations required under the Foreign Currency Act2 (the “FC Act”).

Entities Required To Register At MMA

The below entities are required to register at the MMA under the FC Act:

  1. Entities that sell tourism sector goods and services (“Tourism Sector Entities”);
  2. Any other entity, except for financial institutions, that generates an annual foreign currency revenue of at least USD15 million (or its equivalent) in the previous calendar year through the sale of goods and services (“High-Income Entities”).

Registration Deadlines

Tourism Sector Entities High-Income Entities
Existing Tourism Sector Entities that did not register under the now repealed Regulation on Foreign Currency3

Deadline: Registration application to be submitted to the MMA before 13 January 2025

 High-Income Entities that reached the minimum revenue threshold of USD15 Million in 2024

Deadline: Registration application to be submitted to the MMA before 3 February 2025
Tourism Sector Entities commencing their business4 after 1 January 2025

Deadline: Registration application to be submitted to the MMA within 30 days from the date of commencement of the business

 High-Income Entities that that reaches the minimum revenue threshold of USD15 Million in a calendar year after 1 January 2025

Deadline: Registration application to be submitted to the MMA before the end of January in the subsequent year of reaching the minimum revenue threshold

The registration applications must be submitted to the MMA through the Foreign Exchange Registration Portal of the MMA. The Regulation provides a comprehensive list of information and documents required for the registration.

According to the Regulation, the MMA is to process complete applications within 10 working days. If an application is incomplete, the applicant must submit the missing documents or information within 10 working days from notification by the MMA, after which the MMA is to process the application within 5 working days.

It is to be noted that Tourism Sector Entities which have registered with the MMA under the Repealed Regulation on Foreign Currency will not be required to re-register with the MMA.

Responsible Person

The Regulation further elaborates on the role and responsibilities of the Responsible Persons appointed by the entities registered with the MMA. Maintaining consistency with the procedures established under the Repealed Foreign Currency Regulation, each registered entity must designate both a primary Responsible Person and an alternative Responsible Person.

The Responsible Person serves as the primary liaison between the registered entity and the MMA, and is to communicate with the MMA on behalf of the entity in relation to its compliance and reporting requirements.

The roles of the primary and an alternative Responsible Person may be fulfilled by a director, partner, employee or an officer of the entity.

Enforcement

The MMA is empowered to issue orders to non-compliant entities to complete their registration and may further impose penalties ranging from MVR10,000 to MVR1,000,000 for violations of the Regulation.

Effective Date

The Regulation is effective from 9 January 2025.

References

  1. Regulation Number 2025/R-2
  2. Act Number 32/2024
  3. Regulation Number 2024/R-91 (the “Repealed Regulation on Foreign Currency”)
  4. Business commencement date has been provided as the date of issuance of the operating licence/permit or if such licence or permit is not required, date of registration of the business activity