Bank of Maldives Announces Strategic Overhaul of Foreign Transaction Policies

In a significant move to streamline foreign currency management and promote equitable access, the Bank of Maldives (BML), in coordination with Maldives Immigration, has unveiled a series of targeted changes to its policies on international card usage and foreign currency sales. 

The reforms are designed to curb misuse, protect the integrity of the payment network, and ensure that the nation's limited dollar reserves benefit a broader segment of the population.

A key initiative under the digital partnership with Maldives Immigration will see BML gain the ability to set specific spend limits exclusively for card-present Point of Sale (POS) transactions made overseas. This precise targeting guarantees that genuine travelers, including tourists and students, can continue to use their cards abroad without interruption, while simultaneously strengthening defenses against unauthorised or abusive practices that violate international card network standards.

Addressing the needs of students abroad, the bank confirmed that students using a guardian's card will now be eligible for their own dedicated student card with a designated foreign spend limit. The guardian’s card may be used for a transitional period of three months until the student card is issued.

The policy changes directly confront identified issues of misuse. The bank noted that a small minority of individuals are exploiting personal foreign spend limits to conduct commercial-scale business on specific online shopping platforms, forcing BML to sell large volumes of dollars to a limited number of parties. To rectify this, a daily budget will be established for dollar sales allocated to these specific types of online transactions. The bank was quick to clarify that no immediate changes will affect websites used for other legitimate personal purposes.

Further refining e-commerce rules, BML revealed that fewer than three percent of its customers make over 30 online international transactions per month, a cohort identified as the same group engaged in commercial purchasing. To ensure the fair distribution of its e-commerce currency allocation, a new monthly cap of 30 transactions per customer will be enforced.

The bank also outlined several clarifications—cards linked to actual US dollar accounts will remain exempt from any foreign spend restrictions, operating solely based on the funds available within the account. For customers holding multiple credit cards, the annual fee will be charged only on one card, as the foreign spend limit is applied per customer. 

Additionally, while the sale of USD for Telegraphic Transfers (TTs) will be processed only during operating hours, outgoing TT transfers sent in US Dollars can be initiated 24/7.

Finally, BML issued a stern warning against attempts to circumvent TT limits through transaction splitting, stating that such parties will be identified and their access to foreign currency sales will be restricted within the imposed limits. 

These comprehensive measures mark a decisive step by the nation’s premier financial institution to foster responsible use of foreign exchange and prioritise the needs of the general public.