The Maldives government says it will enforce foreign exchange laws against businesses and individuals involved in unauthorised US dollar trading, following an investigation into the country’s parallel currency market.

Minister of Homeland Security and Technology Ali Ihusaan said authorities are assisting the Maldives Monetary Authority in investigating foreign currency transactions. So far, transactions involving seven foreign exchange businesses have been examined, with the businesses trading around US$76 million over nine months.

Authorities are also investigating the source of the dollars supplied to these businesses. Ihusaan said some foreign currency had been traced to businesses earning US dollars, including resorts. One resort chain was identified as allegedly supplying around US$4 million to the parallel market during the period.

The Minister said tourism-related businesses and individuals receiving salaries in US dollars are also among those being investigated for supplying foreign currency outside authorised channels.

He warned that operating an unauthorised foreign exchange business is a criminal offence, and said authorities will enforce the Foreign Currency Act and related regulations.

Ihusaan urged businesses and individuals to conduct foreign currency transactions through authorised channels, as the government moves to curb the parallel dollar market and strengthen enforcement of the country’s foreign exchange laws.