World · East Asia & Pacific · 2 hrs ago
Maldives bank blocks payments linked to Russia, disrupting tourists’ hotel stays
Bank of Maldives has stopped processing payments linked to Russia, including payments for Russian tourists’ stays in the Maldives.
The bank says the restriction follows its policy on money transfers connected to Russia.
By November 6, payments worth about $2 million had been held up, according to tourism industry representatives.
Some hotels asked guests to pay again or refused to accommodate them, though operators said tourists received rooms after making a second payment.
The Maldives is among the top 10 destinations for Russian tour operators, and its holidays typically cost more than trips to other popular destinations.
Russia’s Economic Development Ministry is preparing an appeal, while the two countries’ central banks are expected to hold talks.
The Bank of Maldives has been rejecting payments connected to Russia, disrupting Russian tourists’ hotel stays.
The bank said Russia is on its list of countries with restricted access for money transfers.
The Russian Union of Travel Industry has asked Russian officials to seek talks with Maldivian authorities.
Some tourists have had to pay twice for their rooms or risk being turned away.
The value of delayed or returned payments was estimated at $2 million.
- Who
- The Bank of Maldives and Russian tourists, tour operators and travel-industry representatives.
- What
- The bank is rejecting payments connected to Russia, leaving some hotel stays unpaid.
- When
- The bank began returning payments on October 18, according to The Moscow Times.
- Where
- The Maldives.
- Why
- The bank said Russia is subject to restrictions on money transfers under its current policy and applicable laws and regulations.
Bank of Maldives
Russian Union of Travel Industry
Payment policy
Bank of Maldives
The bank said it does not process transfers connected to or related to Russia, as required by law and regulations.
Russian Union of Travel Industry
RST wants Russian and Maldivian officials to discuss what is driving the payment rejections and how to ensure hotels are paid on time.
The Bank of Maldives began returning payments, according to The Moscow Times.
Market participants said the value of payments held up by the bank had reached $2 million.
The Russian Union of Travel Industry said it had asked Russian officials to hold talks with Maldivian authorities.
- Bank
- Bank of Maldives, the Maldives’ largest bank
- Payments
- Estimated $2 million in delayed or returned payments
- Tourists
- Russian visitors accounted for 14.3% of arrivals, with 258,100 visitors from January to October
- Average package price
- 585,600 rubles, or about $7,000, according to The Moscow Times
2 sources
What people are saying
Under our current policy, Russia is on the list of countries with restricted access for money transfers. This means that money transfers (including incoming and outgoing) connected to or related to Russia are not processed, as required by law and regulations.
Industry players need to understand what drives this approach and how to ensure timely payment for hotel services