The Maldives Zakat House and the Maldives Monetary Authority (MMA) have signed an agreement transferring the management of the national Zakat Fund to the central bank, in a move aimed at strengthening transparency, accountability and public trust in the Zakat system.

The agreement was signed at a formal ceremony by Minister of Islamic Affairs Dr Mohamed Shaheem Ali Saeed on behalf of the Maldives Zakat House, and by MMA Governor Ahmed Munawwar on behalf of the authority.

Speaking at the ceremony, Minister Dr Shaheem said the decision to place the management of the Zakat Fund under the MMA is a significant step in preserving the credibility and integrity of the system. He noted that the fund would be maintained in a separate, dedicated account with special oversight, ensuring proper governance and public confidence.

The agreement is part of Government reforms to modernise and institutionalise Zakat administration in the Maldives. A dedicated Zakat Act has been enacted for the first time, under which the Maldives Zakat House was established as a statutory authority to oversee the collection and distribution of Zakat.

Under the new legal framework, the Zakat Fund must be maintained independently from the State’s general public account and managed through the MMA. The law also requires that the fund be invested strictly in accordance with Islamic Shariah principles, with an emphasis on ethical investment and sustainable returns.

Minister Dr Mohamed Shaheem added that the Maldivian Zakat law is more stringent and modern compared to many existing Zakat systems in the Islamic world, and said the reforms are expected to bring significant positive changes to the administration, accountability and effectiveness of Zakat payments nationwide.