The government has enacted sweeping regulations to govern the management and investment of the Zakat Fund, aiming to strengthen oversight and expand disbursements to legitimate beneficiaries and state needs. Instituted under the Zakat Act, which took effect on 1 January, the framework designates the Zakat House as the principal authority overseeing the fund, which consolidates capital from wealth taxes (Zakat al-Mal), obligatory charitable contributions (Zakat al-Fitr), and returns generated through institutional investments.
Financial custody of the fund has been assigned to the Maldives Monetary Authority, which will hold the capital in a dedicated account structured according to directives from the Ministry of Finance and Planning. The central bank is tasked with opening and maintaining accounts, preparing detailed inflow and outflow reports in line with Zakat House standards, and reconciling records between the two institutions. Any service fees assessed will be deducted directly from the fund. If the Zakat House delegates collection to an external financial institution, the arrangement must be formalised in a written agreement specifying responsibilities, resource allocation, operational coordination, and adherence to regulatory standards.
The deployment of capital requires a formal budget drafted by the Zakat House and ratified by the Zakat Council. Expenditures are restricted to distributions for Zakat al-Mal and Zakat al-Fitr beneficiaries, investments sanctioned under Islamic Shariah and national law, and administrative costs. Disbursements must conform to the eight charitable categories outlined in the Holy Quran and official guidelines. Investment activity is permitted with guidance from an Advisory Committee, and collaborative ventures are limited to partnerships with government-managed funds and state institutions operating in compliance with Shariah.
Sheikh Imthithaau Abbas, Director General of the Zakat House, told PSM News that transparency remains central to its mission. “Our regulatory frameworks and procedural guidelines are currently accessible to the public on our official website, and we consistently publish comprehensive monthly reports,” he said. “Moving forward, we plan to implement an even greater degree of transparency, specifically by integrating the advanced technological systems utilised by developed nations to further modernise and enhance the operations of the Zakat House.”
The regulations also mandate strict accountability. At the close of each calendar year, the Auditor General must review the fund’s operations and submit findings to Parliament. A comprehensive annual report detailing management must be presented to both the President of the Republic and Parliament within three months of year-end.