Minister of Homeland Security and Technology, Ali Ihusan, has announced that local businesses are now experiencing the benefits of the government’s crackdown on expatriate-run illegal commercial operations. Over the past two weeks, 47 such businesses have been shut down as part of the government’s broader initiative to address the issue of undocumented foreigners in the Maldives. This effort is a key component of the administration’s commitment to resolving the challenges posed by illegal expatriate presence. A task force comprising the Ministry of Economic Development, the Ministry of Health, the Ministry of Homeland Security and Technology, and various enforcement agencies under these ministries, commenced its operations late last month.
Speaking on PSM News’s “Dhuveli” program, Minister Ali Ihusan highlighted that businesses operated by expatriates with Maldivians acting as silent partners are significantly undermining small and medium-sized enterprises (SMEs) in the Maldives. He explained that despite being registered under a Maldivian’s name, these establishments are entirely managed by expatriates, with all generated income being controlled by them. The Minister further noted that these funds are frequently converted into US dollars and expatriated from the country.
With 47 businesses having been closed in the past two weeks, Minister Ihusan stated that comprehensive investigations will be conducted by the police into the operational methods of these businesses. He remarked, “We are initiating police investigations into establishments that exhibit such characteristics. We are also identifying premises suspected of money laundering. Should it be necessary to press criminal charges based on the sources and flow of funds in these establishments, legal action will be taken against the Maldivian parties under whose names these businesses are registered. Additionally, individuals found to be employing expatriates illegally will face a fine of MVR 50,000, which we will enforce.”
The Minister stressed that the outflow of dollars from the Maldives due to such businesses is enabled by Maldivians who provide opportunities for these illicit operations. He appealed to Maldivians to cease such practices and to engage in their own legitimate businesses. Minister Ihusan affirmed that the government’s ongoing efforts are already yielding positive results. He noted an increase in patronage for Maldivian businesses as foreign-run operations close down.
“One feedback we are currently receiving from this initiative is that as illegal corner shops and restaurants begin to close, Maldivian businesses are steadily seeing an increase in their sales. Maldivian-owned cafes are selling well. This is the change we truly aim to bring – for Maldivians who have invested in the Maldives to receive the income they rightfully deserve,” the Minister stated. The government’s overarching objective is to halt illegal commercial activities by expatriates and to establish a permanent solution to the issue of undocumented foreigners residing in the Maldives. As part of this effort, the government is also working to shut down unregistered spas operating in Malé. Furthermore, a window of opportunity has been extended until April next year for expatriates to regularize their status in the country.
