Bank of Maldives Partners with Immigration to Secure Foreign Spend Limits and Ensure Equitable Dollar Access

Business

MALE, Maldives – In a strategic move to prioritize essential public needs and curb abusive financial practices, the Bank of Maldives (BML) has announced a suite of new measures aimed at enhancing the fair distribution of foreign currency.

The centerpiece of these reforms is a new digital partnership between Bank of Maldives and Maldives Immigration. This collaboration allows the Bank to enable foreign spend limits specifically for "card-present" Point of Sale (POS) transactions conducted overseas.

By verifying a customer's travel status through immigration data, BML ensures that those physically traveling abroad can continue to use their cards seamlessly for genuine expenses. This targeted approach is designed to strengthen safeguards against unauthorized or abusive practices that bypass international card payment network standards.

Supporting Students Abroad

Recognizing the needs of the academic community, BML has introduced specific protections for students:

1. Dedicated Student Cards: Students studying abroad who currently rely on a guardian’s card will be issued their own "Student Card," complete with a dedicated foreign spend limit.
2. Transition Period: To ensure no disruption to education, guardians' cards may continue to be used for a three-month grace period while the new student cards are processed.

Crackdown on "Business via Personal Cards"

In today's press briefing BML said that they have identified that a small group of individuals—fewer than 3% of customers—are responsible for a disproportionate volume of dollar outflows by using personal cards to conduct business transactions on online shopping sites.

To redistribute these dollars for the benefit of the wider population, BML is implementing the following:

1. Transaction Caps: E-commerce transactions will be limited to 30 per month per customer.
2. Daily Budgets: A daily budget will be set for the total amount of dollars sold for online shopping transactions.
3. Personal Use Protected: The Bank clarified that no changes will be made to sites used for legitimate personal purposes.

Key Operational Changes

The Bank also detailed several administrative updates to streamline foreign currency management:

These measures reflect the Bank's ongoing commitment to ensuring that the Maldives' foreign currency reserves are utilized transparently and equitably, favoring essential needs like travel and education over unauthorized commercial activities.