The Maldives Zakat House and the Maldives Monetary Authority have signed a formal agreement reaffirming the central bank’s role as custodian of the national Zakat Fund, strengthening governance and transparency in the management of zakat contributions.
Under the arrangement, the Zakat Fund established under the Zakat Act will continue to be maintained in an account held separately from the Public Bank Account. This structural separation is intended to enhance accountability, safeguard fund integrity, and reinforce public confidence in the governance, management, and distribution of zakat in the Maldives.
Maldives Monetary Authority confirmed that the agreement aligns with its broader policy agenda to promote a resilient and well governed Islamic social finance ecosystem. The move underscores the authority’s commitment to ensuring that zakat funds are administered in line with best practices, with clear institutional oversight and transparent financial controls.
The agreement also supports the objectives of the Maldives Islamic Social Finance Initiative, a national framework designed to strengthen Islamic social finance instruments such as zakat, waqf, and sadaqah in advancing inclusive and sustainable development.
Maldives Zakat House stated that the reinforced custodial arrangement will contribute to greater trust among contributors and beneficiaries alike, ensuring that zakat collections are managed with integrity and disbursed effectively to eligible recipients.
By strengthening institutional and governance frameworks, the latest agreement marks another step in consolidating public confidence in Islamic social finance institutions, while positioning zakat as a key pillar in the Maldives’ broader social protection and inclusive development agenda.
