President Dr. Mohamed Muizzu has ratified two crucial pieces of legislation designed to strengthen the Maldives’ financial system and enhance investor and consumer confidence.
At the 26th sitting of the second session of the People’s Majlis, held on 18 August 2025, Parliament passed both the Insurance Act (Act No. 13/2025) and the First Amendment to the National Payment System Act (Act No. 8/2021). Following ratification, both have been published in the Government Gazette and are now in effect.
Strengthening Insurance Sector Oversight
The new Insurance Act establishes the first comprehensive legal framework to regulate the provision of insurance services in the Maldives. It introduces strict licensing procedures for insurers and intermediaries, defines management structures, and sets out clear principles under which companies must operate.
The Act mandates proper record-keeping, financial reporting, audits, and inspections, while also introducing guidelines for dispute resolution, market conduct, and regulatory interventions when necessary. These reforms will ensure accountability, improve consumer protection, and create a transparent environment for investors.
Modernising the National Payment System
Alongside this, the First Amendment to the National Payment System Act confers expanded authority on the Maldives Monetary Authority (MMA) to drive innovation in the nation’s payment infrastructure. The amendment empowers the MMA to establish independent companies, forge partnerships, and enter joint ventures to accelerate the adoption of modern, technology-driven payment services.
It also prohibits unlicensed operators from running payment systems, granting the MMA the power to impose heavy penalties ranging from MVR 100,000 to MVR 10 million for violations. This strengthens the regulatory environment, ensuring that only authorised and secure service providers can operate in the Maldivian market.
A Step Towards Financial Modernisation
With these measures, President Muizzu’s administration has demonstrated its commitment to safeguarding financial stability and fostering sustainable growth. The Insurance Act builds a foundation of trust and reliability in the insurance market, while the Payment System Amendment positions the Maldives as a forward-looking economy embracing technological innovation.
Together, these laws mark a turning point in modernising the nation’s financial landscape—paving the way for stronger investor confidence, greater consumer protection, and a more resilient economy.
