Gov establishes MIFSA: Maldives International Financial Services Authority

President Dr Mohamed Muizzu has established the Maldives International Financial Services Authority (MIFSA) on Sunday.

The objective of setting up this authority is to facilitate the development of a legal framework for the provision of onshore financing services and to implement offshore financing services as stipulated in existing laws.

Minister of Economic Development and Trade Mohamed Saeed announced the establishment of MIFSA on social media X, stating the initiative will prove to be key in establishing a modern regulatory framework to attract a Development Bank and other financial services necessary for achieving the administration's development plans.

A statement released by the President's Office states that offshore services will be implemented as outlined in the Special Economic Zones Act.

Article 16 of the Special Economic Zones Act defines Offshore Financial Services as being amongst the financial services established in a Zone under an Offshore Financial Services License, which is not normally granted directly to residents, and attracts incentives permitted to be given as defined in the act.

The included financial services are:

(a) Banking Services authorized by the Maldives Monetary Authority (MMA)

(b) Securities Services authorized by the Capital Market Development Authority (CMDA)

(c) Insurance Services authorized by the Maldives Monetary Authority (MMA)

(d) Finance Leasing Services authorized by the Maldives Monetary Authority (MMA)

(e) Collective Investment Schemes authorized by the Capital Market Development Authority (CMDA)

(f) Other financial services authorized either by the Maldives Monetary Authority (MMA) or Capital Market Development Authority (CMDA)

MIFSA will also be incorporating onshore financial services in future, after relevant laws are drafted and ratified, which the authority will be contributing its expertise towards.

Both onshore and offshore financial services will include development banks and international financial centres.

Additionally, MIFSA will be actively working to identify legal and administrative challenges faced in establishing competitive financial markets in the country, and to ascertain the most feasible solutions for the matter.