The government is intensifying its efforts to combat a significant drain on its foreign currency reserves, directly linking the nation's severe dollar shortage to widespread illegal business operations run by foreigners.
Despite previous measures, the issue persists, with authorities now launching targeted investigations into enterprises suspected of being fronts for foreign nationals who then repatriate hundreds of thousands of dollars abroad annually. This exodus of foreign currency is crippling the economy, contributing to a black market for dollars and driving up the currency's unofficial exchange rate.
At the heart of the crisis is a practice where foreigners operate businesses under the name of Maldivians, as highlighted by the Minister of Homeland Security and Technology, Ali Ihusan in an interview with PSM News.
He revealed that many shops, while legally registered under a Maldivian name, are usually owned and operated by foreigners who exploit lower labour costs. This arrangement often turns willing Maldivian citizens into mere "rent collectors," who accept a monthly fee for the use of their name on official documents, unaware of or indifferent to the larger economic threat, he added.
Minister Ihusan confirmed that enforcement agencies have initiated special operations to monitor these businesses, their foreign associates, and the financial transactions.
The government has vowed to take strict action, including criminal prosecution, for offenses related to money laundering and illegal immigration. The public is urged to cease all involvement in such schemes and to report any known instances to the authorities, emphasising that collective civic responsibility is crucial to resolving the dollar crisis that affects all citizens.