A major step forward in strengthening the financial infrastructure of the Maldives was achieved as President Dr. Mohamed Muizzu ratified the First Amendment to the National Payment System Act (Act No. 8/2021), expanding the Maldives Monetary Authority’s (MMA) legal powers to develop and regulate the nation’s digital payment ecosystem. The amendment, passed by the People’s Majlis on August 18, 2025, is now in effect following its publication in the Government Gazette.
This legislative reform authorizes the MMA to lead the evolution of the national payment system by embracing modern technologies and enabling the introduction of innovative payment services. The MMA is also granted the authority to establish a dedicated company or collaborate through partnerships and joint ventures to implement and manage these services. This allows the central bank to play a direct and dynamic role in expanding the country’s financial infrastructure.
A core feature of the amendment is the requirement for licensing. Under the new provisions, individuals or entities are prohibited from operating any payment system specified in the Act without securing a licence or explicit authorisation from the MMA. Furthermore, soliciting such services or attempting to do so without proper approval is strictly banned.
To ensure regulatory compliance and safeguard the financial system, the MMA is empowered to impose financial penalties on violators. Fines range from MVR 100,000 to MVR 10,000,000 depending on the severity of the infraction, reinforcing the importance of legal oversight in payment system operations.
The ratified amendment enhances MMA’s regulatory scope, strengthening its role as the guardian of financial stability and innovation in the Maldives. With this added authority, the central bank is expected to accelerate the country’s transition to more secure, efficient, and user-friendly payment platforms. The enhanced legal framework reflects a broader national effort to improve economic resilience and support the country’s expanding tourism and investment-driven economy by modernizing its financial services landscape.
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