President establishes MIFSA to develop framework for offshore financial services

President Dr. Mohamed Muizzu has established the Maldives International Financial Services Authority (MIFSA) – which will develop the legal framework for the provision of both onshore and offshore financial services.

The new institution was established by President Muizzu on Sunday, with the powers vested in him under Article 116 of the Constitution.

MIFSA falls under the Economic Ministry’s mandate.

According to the President’s Office, MIFSA is mandated to develop a legal framework for the provision of onshore financing services, in addition to offshore financing services mentioned in the Special Economic Zones Act.

It said that the establishment of MIFSA would enable the formation of offshore and onshore development banks and international financial centers.

The new institution will also conduct research to seek modern solutions for the legal and administrative challenges of establishing a competitive system to develop financial markets.

In a post on X on Sunday evening, Economic Minister Mohamed Saeed welcomed the move, which he said would pave the way “for establishing a modern regulatory framework to attract a development bank and other financial services necessary for achieving our development vision.”

The Special Economic Zone Act defines offshore financial services as financial services “established in a zone as an offshore financial service provided under an offshore financial services license; not ordinarily provided directly to residents; and attracts incentives permitted to be given under the Act.”

According to the Act, this covers:

• Banking services authorized by the Maldives Monetary Authority
• Securities services authorized by the Capital Market Development Authority
• Insurance services authorized by the Maldives Monetary Authority
• Finance leasing services authorized by the Maldives Monetary Authority
• Collective investment schemes authorized by the Capital Market Development Authority
• Every other financial service authorized either by the Maldives Monetary Authority or Capital Market Development Authority.