On Tuesday, Bank of Maldives (BML) justified its choice to prohibit dollar transactions at foreign ATMs and POS terminals for cards used internationally without the cardholder being abroad, deeming it a crucial security measure, while strongly denying any sharing of personal customer data with Maldives Immigration to enforce the policy.

BML announced on Saturday that residents of Maldives will not be able to use their cards internationally unless the cardholder is present overseas.

After the announcement, Immigration updated its information-sharing protocols. In the past, Immigration did not disclose any information to outside parties. With the updated procedure, data can be shared with law enforcement and appropriate authorities in accordance with communication and financial regulations. Certain critics contended that the alteration might erode public trust in BML.

In reaction, BML stated that it does not share customer data with Immigration to confirm if a card has been used overseas without the cardholder's presence.

As per the bank, each card transaction undergoes an approval or authorization procedure, during which the system automatically verifies the card’s validity and assesses if the account balance or credit limit is adequate.

Through the new digital integration, the system will automatically check if the customer is overseas during a foreign transaction. BML characterized the integration as a crucial measure implemented in response to increasing financial crimes.

The bank stated that the action directly safeguards customers against fraud and scams.

“Specifically, there are instances where cards are removed from the country without the awareness of the cardholder, or where card information is duplicated and utilized to conduct unauthorized purchases internationally,” BML expressed in its announcement.

BML stated that, according to the general terms and conditions for card usage, customers have consistently permitted the bank to acquire information necessary for verifying transactions. The recent integration with Immigration merely clarifies this provision.

The bank emphasized that verifying card transactions is essential according to international card-network standards to uphold the trustworthiness of worldwide payment systems.

BML stated that the action places it as a top bank in South Asia regarding security. Conventional banking systems by themselves cannot ensure this degree of protection, and the integration represents a significant improvement in the security of the Maldives' payment system.

The bank highlighted that all actions implemented are focused on maintaining the security, integrity, and dependability of card transactions, and that no customer data is disclosed beyond what is essential for verification.