The Maldives Zakat House and the Maldives Monetary Authority (MMA) have signed an agreement reaffirming the MMA’s role as the custodian of the Zakat Fund established under the Zakat Act, reinforcing efforts to enhance transparency and accountability in the management of zakat in the Maldives.
Under the agreement, the Zakat Fund will be maintained in an account separate from the Public Bank Account. This arrangement is aimed at strengthening governance standards, ensuring clearer oversight of fund management, and building greater public confidence in the collection, administration, and distribution of zakat.
The agreement aligns with the MMA’s broader policy agenda to promote a robust and well-regulated Islamic social finance ecosystem in the country. These efforts are being advanced through initiatives such as the Maldives Islamic Social Finance Initiative (MISFI), which focuses on strengthening institutional frameworks and governance structures for Islamic social finance instruments.
By reinforcing the regulatory and governance framework for zakat, the initiative is expected to support inclusive development objectives while enhancing trust in Islamic social finance institutions. Authorities say the strengthened arrangements will contribute to more effective and transparent utilization of zakat funds, in line with national development priorities and Islamic principles.
