To reinforce trust, accountability, and strong governance in the national zakat system, the Maldives Zakat House and the Maldives Monetary Authority (MMA) have signed an agreement transferring the management of the Zakat Fund to the central bank. The signing ceremony was attended by key officials, with Minister of Islamic Affairs Dr Mohamed Shaheem Ali Saeed highlighting the significance of MMA’s involvement in safeguarding the credibility and transparency of the fund’s administration, particularly as the zakat framework continues to evolve into a more institutionalised and professionally managed national system.
Speaking at the event, Minister Shaheem said the fund will be maintained in a separate account with special oversight, underlining that central bank custodianship is expected to sustain public confidence in the zakat ecosystem. “The fund will be maintained in a separate account with special oversight. I believe that the MMA’s management of this fund is an important step to maintain confidence in the system,” he said. The agreement was signed by Minister Shaheem on behalf of the Maldives Zakat House and by MMA Governor Ahmed Munawwar, reflecting a coordinated national approach to strengthening Islamic social finance governance through clear institutional roles and enhanced safeguards.
Under the new framework, the Zakat Fund will be held independently from the state’s public account and managed in strict compliance with Islamic Shariah principles, with an emphasis on ethical investment and sustainable returns. The Maldives Zakat House and the MMA have reaffirmed MMA’s role as the custodian of the Zakat Fund established under the Zakat Act, with the arrangement providing for the fund to be maintained in an account separate from the Public Bank Account. This separation is designed to strengthen transparency, accountability, and public confidence in the governance, management, and distribution of zakat in the Maldives, while also aligning the system with best-practice financial controls and oversight mechanisms.
The agreement also supports broader government efforts to reform and institutionalise the zakat system, including the drafting of a dedicated Zakat Act and the establishment of the Maldives Zakat House as a specialised agency focused on professional administration and effective distribution. In addition, the development complements MMA’s wider policy agenda to promote a resilient and well-governed Islamic social finance ecosystem in the Maldives, including through the Maldives Islamic Social Finance Initiative (MISFI). By strengthening institutional and governance frameworks for zakat, the initiative is positioned to support inclusive development objectives and deepen trust in Islamic social finance institutions, reinforcing the Maldives’ commitment to values-based finance and transparent public stewardship.
advertisment
advertisment
