"Maldivians reduced to ‘fronts’ for expat businesses

Immigration Controller Ahmed Faseeh has warned that Maldivians are increasingly being used as fronts for businesses run by expatriates, describing the situation as deeply troubling and widespread.

Speaking at a media briefing, Faseeh said that after expatriates are brought to Maldives for specific jobs, some end up exercising significant control over businesses registered under Maldivian names, effectively turning locals into salaried employees or owners "just in name".

“It is difficult to hear, but this is happening every day,” Faseeh said, highlighting what he described as the growing power and influence of expatriate business operators in the country.

He said many corner shops, cafés and fruit stalls across Male' are registered in the names of Maldivians but are in reality operated by expatriates, with profits allegedly being deposited into foreigners' accounts.

“People are asking how this is happening. Businesses are registered under Maldivian names, but the money is going into expatriates’ accounts,” he said.

Faseeh said this occurs either deliberately or negligently, in violation of existing laws and regulations, often in exchange for financial gain.

He added that in many cases, such businesses operate without proper registration or tax compliance.

“There are legal ways to do business with expatriates in Maldives. Those systems must be followed. Otherwise, payments are not made to MIRA, and businesses are operating illegally,” he said.

Immigration Controller also pointed to what he described as the strong legal and financial backing enjoyed by some expatriate operators.

“If a foreigner is arrested, suddenly there are six to ten lawyers volunteering. That shows how deeply rooted and financially powerful some of these operations are,” Faseeh said.

He stressed that expatriates should not be allowed to operate corner shops and similar small retail businesses outside the legal framework and said Maldives Immigration is conducting a special investigation in collaboration with the Maldives Police Service to identify those involved.

The issue of expatriate run stalls and shops has been a long standing concern among local business owners, who have repeatedly raised complaints about unfair competition.

As part of a special operation targeting undocumented expatriates and illegal trade, the Ministry of Economic Development said 74 businesses were closed between November 29 and Tuesday. During the same period, the ministry received 252 complaints of illegal business activity and conducted inspections on 98 establishments.