33-year-old Sneekes has decided not to move from his Midlands home to East Yorkshire, and so will leave the club shortly.
Molby confirmed: "I've spoken to Richard and he's not willing to move over here. We're in talks with him at the moment and basically we're trying to pay his contract up.
"He's got a year of his deal left. Ideally, I think he would have liked to have stayed here but the West Midlands is not exactly a few minutes away.
"I've said before why I think it's important the players live near to Hull. I'm not prepared to make any allowances."
Brian Little signed the Dutch midfielder on a two-year deal in November after he was released by Stockport. The former West Brom favourite played 25 games in the black and amber before coming to the decision to end his Tigers career.
All other players have agreed to the 45-minute rule. Andy Holt and David Beresford are two who will have to adjust their current arrangements.
Molby said: "Andy has told me he's moving over here on June 8th and that's the level of commitment I'm looking for. He has a wife and young child but I think he found commuting last season wasn't the ideal situation.
"As for Bez, he's looking to get a place over here during the week. It's not ideal but we'll see how that goes. He knows what the position is and he knows he can't expect any favours. I don't really want to lose him."