The Maldives Monetary Authority (MMA) has presented a paper at the National Anti-Corruption Conference, highlighting on the importance of drafting a legislation on asset recovery that stipulates the law on confiscation and restoration of proceeds from criminal activities; a step the central bank considers vital to prevent black money from further rotation.
MMA’s presentation also focused on several causes for the rotation of black money within the Maldivian economy, factors that hinder the progress of the Authority’s efforts to trace black money and prevent money laundering, and discussed ways to overcome those challenges.
Furthermore, the paper suggested the adoption of transparent mechanisms in trade dealings and project management as an important step to prevent black money from entering financial system, and discussed issues in the area in the absence of relevant legal endorsement. The paper also stated that several social and economic factors contribute to the rotation of black money such as handling cash, financial dealings by private companies, and services provided by financial institutions.