President Dr. Mohamed Muizzu on Saturday ratified legislation that designates the Maldives Monetary Authority (MMA) as the custodian of the newly established national Zakat Fund.
The government’s zakat bill, sponsored by Vilufushi MP Hassan Waheed, was passed unanimously by Parliament with 63 votes last week. The new law will come into force on January 1.
According to the President’s Office, the legislation aims to create a comprehensive legal framework for the zakat system in the Maldives, ensuring the proper collection, management, and distribution of zakat in alignment with Islamic principles. It establishes a dedicated Zakat Fund to safeguard contributions, allocate them to eligible beneficiaries, and allow investment of funds in accordance with Shariah.
The Fund will be maintained in a separate account at the MMA, as designated by the Ministry of Finance. Upon implementation of the law, the existing Zakat Fund established under the Public Finance Act, including all its assets, will be transferred to the new Fund.
Under the legislation, the national zakat policy, including the collection and distribution of zakat, will be set by the President on the advice of the Islamic Minister. The President will also form a Zakat Council to support both the Minister and the Maldives Zakat House in administering the system.
Beginning next year, the Maldives Zakat House will be restructured as a government agency under the Islamic Ministry. All responsibilities, assets, facilities, and budget allocations currently held by the Zakat House will be transferred to the new agency.
A Shariah Advisory Committee, appointed by the President, will provide religious guidance and oversee adherence to Islamic principles in the formulation and implementation of the zakat system.