The Maldives Monetary Authority (MMA) has cautioned the public against engaging in foreign exchange dealings with individuals or entities lacking a valid license, stressing that unauthorized currency transactions are illegal under Maldivian law.

The central bank stated that foreign exchange operations in the Maldives should be conducted by organizations authorized by the MMA according to the Foreign Currency Act and the Money Changing Business Regulation.

The alert comes after the Authority noticed that certain entities are still performing foreign exchange transactions without the necessary approval.

As of September 9, the MMA had granted licenses to 59 organizations to conduct foreign exchange operations.

The Authority advised that anyone looking for currency exchange services outside of commercial banks should confirm that the provider possesses a valid license prior to finalizing a transaction.

The central bank additionally urged customers and companies to make sure that all foreign exchange transactions adhere to relevant laws and regulations.

The existing regulation signifies a significant revision to the structure overseeing money-changing enterprises.

It supersedes regulations that have been in effect since 1987 and implements new standards designed to enhance supervision of the foreign exchange industry.

The updated framework aims to set contemporary operating standards and enhance regulatory oversight of companies engaged in the purchasing and selling of foreign currencies.

The MMA's most recent alert arises as officials persist in their initiatives to enhance regulation and openness in the nation's foreign exchange market and restrict illegal currency trading.