The Maldives has today commenced the implementation of a dedicated Zakat Act for the first time in its history.

Under the provisions of the Zakat Act, President Dr. Mohamed Muizzu has established the Maldives Zakat House as an administrative entity functioning under the Ministry of Islamic Affairs.

Concurrently, the Maldives Zakat House, which previously operated under the Ministry of Islamic Affairs prior to the implementation of the Zakat Act, has been dissolved as of today.

The Zakat Bill was passed by the People's Majlis on the third of last month and was ratified by the President on the sixth of last month.

The primary objective of the Act is to ensure that Zakat collection and distribution in the Maldives are managed within a robust legal framework, fulfilling the purposes prescribed for Zakat in Islamic Shari'ah.

According to the Act, once implementation begins, the national policy on Zakat—including the procedures for collection and distribution of Zakat assets and funds—will be determined by the President, upon the advice of the Minister.

The Act also defines the responsibilities of the Minister of Islamic Affairs regarding Zakat. These duties include publicizing policies related to Zakat and providing general instructions and advice to enforcement agencies and government departments concerning those policies.

The legislation mandates that within 60 days of the Act coming into effect, the President must establish a "Zakat Council" to coordinate and advise the Minister and the Zakat House on the management of the Maldivian Zakat system. This council will consist of nine members, including the Minister, the Director General of the Maldives Zakat House, and two members appointed directly by the President.

With the commencement of the Act, the "Maldives Zakat House" is established as a government institution operating under the Ministry. The Bill outlines its responsibilities, which include planning and managing all administrative aspects of Zakat collection and distribution, as well as establishing and maintaining up-to-date registries of Zakat beneficiaries. It is also the responsibility of the Zakat House to collaborate with other state institutions on matters related to Zakat.

Furthermore, a Shari'ah Advisory Committee will be formed. The Act stipulates that the President, advised by the Minister, shall establish this committee to provide legal and Shari'ah guidance to enforcement agencies on the structure and operation of the Zakat system.

The Zakat Act mandates that every individual meeting the criteria for Zakat al-Fitr and Zakat al-Mal must pay Zakat in accordance with the Act and its subsequent regulations. The Bill also details the methods for determining the Nisab (minimum wealth threshold), the requirements for Zakat payers, and the eligibility criteria for beneficiaries.

Upon implementation, a "Zakat Fund" is officially created to securely hold Zakat funds, disburse them to eligible recipients, and invest the capital in accordance with Islamic Shari'ah to generate beneficial returns. This fund will be managed in a separate account at the Maldives Monetary Authority (MMA), distinct from the Public Bank Account, as determined by the Ministry of Finance. The MMA will serve as the custodian of the Zakat Fund.