The Parliament’s Public Accounts Committee has approved amendments to the Foreign Exchange Act to penalise the sale and advertising of foreign currency at rates above those set by the Maldives Monetary Authority (MMA).

The amendments were made to a government-sponsored bill submitted by PNC MP Abdul Sattar Mohamed during the committee’s meeting on Wednesday.

Under the proposed amendments, buying and selling foreign currency must be conducted within the rates set by the MMA. Selling or attempting to sell foreign currency above the prescribed rate would be an offence punishable by a fine of between MVR 25,000 and MVR 1 million.

Advertising or promoting foreign currency at rates outside the permitted range would also be prohibited. Violations would carry fines ranging from MVR 25,000 to MVR 500,000.

The amendments also allow administrative and criminal action to be taken against violators. Registered businesses found in breach could face fines of between MVR 100,000 and MVR 5 million.

The bill initially sought to revoke the authority granted to Category A resorts to mark up the price of USD 500 per tourist and require resorts to sell 20 per cent of their dollar earnings.

The bill was previously sent back to the Public Accounts Committee for further review.