Regulatory Alerts2025-08-28
First Amendment to the National Payment System Act
The President of the Maldives enacted Law No. 14/2025, amending the National Payment System Act to expand the Monetary Authority's operational powers and enforce stricter licensing requirements. The amendment grants the Authority the right to own, establish, and operate payment systems, as well as create joint ventures, while prohibiting unlicensed solicitation of payment services within or targeting the Maldives. Violations of the new solicitation ban are subject to significant fines ranging from 100,000 to 10,000,000 Rufiyaa, with the law taking effect upon its publication in the Gazette.
Law No. 14/2025
To request that the Rules and Procedures be published in the Gazette, please send to mv.gov.po@legalaffairs.
Office of the President Bodu Thakurufaanu Magu Malé, Maldives Phone: 3336211 Mobile: 7242885 Website: www.mv.gov.gazette Volume: 54 Number: 149 Date: 5 Rabi' al-Awwal 1447 – 28 August 2025 Thursday
Law No. 14/2025 First Amendment to the National Payment System Act (Law No. 8/2021)
On Thursday, 28 August 2025 (5 Rabi' al-Awwal 1447), the Bill "First Amendment to the National Payment System Act (Law No. 8/2021)" was approved by the People's Majlis of the Maldives during its 26th sitting of the second session of the 20th Parliament held on Monday, 18 August 2025. In accordance with Article 92 of the Constitution, the President of the Republic assented to the Bill, making it an Act, which was published in the Government Gazette today.
Volume: 54 Number: 149 Government Gazette of the Maldives
Law No. 14/2025 First Amendment to the National Payment System Act (Law No. 8/2021)
The following amendments are made to the National Payment System Act (Law No. 8/2021).
- Article 15 of the aforementioned Act is amended as follows:
Participation in Operating Systems and Providing Payment Services
15(h) The Authority may do the following:
(1) Be the owner of systems, or establish, operate, or participate in the ownership and operation of systems;
(2) Open and maintain accounts for operators and participants for the purpose of clearing and settling transfers made by or through a system;
(3) Maintain collateral for operators and participants;
(4) Provide intraday liquidity to participants after taking appropriate collateral.
(i) The Authority may establish a company, partnership, or joint venture in the capacity of a shareholder or partner, or in any other capacity, for the purpose of operating a system, providing a payment service, or achieving the objective of developing the National Payment System. Alternatively, the Authority may become a shareholder of a company or joint venture so established, or a participant in a partnership.
- Article 50(i) of the aforementioned Act is amended as follows:
50(i) Except for the banks mentioned in Article 18(r) of this Act, and except for persons and activities exempted by the Authority under Article 18(l), no person other than those specified shall provide any payment service in the Maldives without obtaining a license or permit granted by the Authority under this Act. Furthermore, except for persons operating the systems mentioned in Article 18(i) of this Act, no person other than those specified shall operate any system mentioned in this Act without obtaining a license granted by the Authority under this Act. No person shall claim to provide such a service or conduct such an activity without a license or permit.
- A new Article is added after Article 50 of the aforementioned Act as follows:
Solicitation of Payment Services
50-1(i) Except for payment service providers, banks mentioned in Article 18(r) of this Act, and persons and activities exempted by the Authority under Article 18(l) who are required to obtain a license or permit under this Act, no person shall solicit, either directly or through a person located in or outside the Maldives, any payment service in the Maldives or elsewhere.
(j) No person located in the Maldives shall solicit, through a person located outside the Maldives, any payment service. This prohibition includes payment service providers, banks mentioned in Article 18(r) of this Act, and persons and activities exempted by the Authority under Article 18(l) who are required to obtain a license or permit under this Act.
(k) The prohibition mentioned in paragraph (j) of this Article shall not apply if the person located outside the Maldives is a payment service provider, a bank mentioned in Article 18(r) of this Act, or a person or activity exempted by the Authority under Article 18(l) who is required to obtain a license or permit under this Act.
(l) If any person does anything stated in paragraphs (i) and (j) of this Article as prohibited, the Authority has the discretion to impose a fine on that person ranging from 100,000 (One Hundred Thousand) Rufiyaa to 10,000,000 (Ten Million) Rufiyaa.
(m) For the purposes of this Article, "solicitation" includes making an offer or proposal to the public or a segment of the public in the Maldives to provide a payment service, issuing an advertisement containing such an offer or proposal, making an offer to enter into an agreement related to providing a payment service, inviting such an agreement, or issuing an advertisement containing such an offer or invitation. If the payment service is provided in the Maldives or elsewhere, the act of solicitation includes such activities.
(n) The Authority has the power to determine specific acts that constitute solicitation of payment services for the purposes of this Article. If the Authority determines specific acts as solicitation of payment services, it must make such determinations public.
- This Act shall come into force from the date it is passed, assented to, and published in the Government Gazette of the Maldives.