The Ministry of Economic Development and Trade has announced that, as part of its ongoing efforts to curb illegal business operations by expatriates, 37 businesses have been shut down to date.
To address the widespread issue of expatriates engaging in illegal business activities, a special task force named the “National Taskforce on Combating Illegal Expatriate Operations and Businesses” has been established. This task force comprises the Ministry of Economic Development and Trade, the Ministry of Homeland Security and Technology, and government enforcement agencies, specifically the Maldives Police Service and Maldives Immigration. The task force is actively inspecting and investigating businesses suspected of operating illegally within the Maldives.
According to statistics released by the Ministry of Economic Development, detailing the task force’s operations, a total of 252 cases related to illegal expatriate business activities were reported between the 29th of last month and the 15th of this month.
Ongoing operations to inspect and shut down illegal businesses:
- Complaints received: 252
- Businesses inspected: 98
- Businesses shut down: 37
Among the businesses shut down, some were found to be in violation of various laws. Specifically, 25 businesses were closed due to direct violations of laws pertinent to the Ministry of Economic Development. Additionally, 12 other businesses were shut down for infringing upon other relevant laws. The Ministry of Economic Development further stated that eight of the businesses initially closed for illegal operations have since been permitted to reopen after rectifying their irregularities in accordance with regulations.
The Ministry of Economic Development had previously stated that it is collaborating with investigative authorities to identify businesses operated by expatriates using Maldivians as fronts. While efforts are underway to identify and take action against such businesses, the Ministry of Economic Development has appealed to the public to provide complete and accurate information when reporting cases. The Ministry extended its gratitude for the public cooperation received thus far in this endeavor.
The Ministry has urged the public to report any instances where parties are found to be conducting business illegally in the Maldives. Reports can be submitted via the Ministry’s website (https://trade.gov.mv/report-business-dv). Furthermore, the Ministry’s hotline number, 3333199, is available for reports every working day between 8:00 AM and 8:00 PM. The government also noted that issues can be reported to Immigration Watch.
The Ministry of Economic Development and Trade acknowledges that government authorities consistently receive complaints regarding widespread illegal business operations by expatriates in the Maldives. The Ministry has compiled a list of 34 business sectors where expatriate involvement is prohibited.
In a press statement, the Ministry of Economic Development and Trade noted two primary ways in which expatriates are observed to be operating illegally. These include businesses run by expatriates using Maldivians as fronts, and expatriate businesses operating in sectors not permitted for foreign investment under the Foreign Investment Law.
