On 8 September 2020, the President ratified the Maldives’ Chartered Accountants Act (Law Number 13/2020) (the Act), which establishes the Institute of Chartered Accountants of the Maldives (ICAM), a separate legal entity, to regulate, develop and oversee the accountancy profession in the country. The Maldives’ Chartered Accountants Bill, which was presented to the parliament on 7 December 2019, was passed by the parliament on 26 August 2020.

As per the Act, ICAM has the sole authority to grant, suspend or revoke “licensed auditor” status to practitioners in the Maldives. Practising licenses issued by government institutions to date would remain valid until 8 March 2021.

ICAM also has the authority to determine financial accounting standards and auditing standards to be used in the private sector.

ICAM will initially be governed by an interim Council, comprising the following members:

• Auditor General (Council President)
• Financial Controller of the State
• Commissioner General of Taxation
• Two representatives of the Auditor General’s Office appointed by the Auditor General
• Four private sector practitioners appointed by the Auditor General

The interim Council must be convened by 29 September 2020 and will oversee the operations of ICAM for 4 years. A 9-member permanent Council must then be elected for a term of 3 years. The permanent Council comprises the following members:

• President of the Council elected by members of ICAM
• Vice President of the Council elected by members of ICAM
• Four members elected by members of ICAM
• Auditor General
• Commissioner General of Taxation
• Financial Controller of the State

A person elected to the Council by members of ICAM must be a Maldivian citizen and a “Fellow Member” of ICAM. The Council must appoint a Chief Executive Officer to oversee the day-to-day operations of ICAM, which will be financed through the State budget and through its own revenue-generation and financing activities.

The Act comes into effect on 8 September 2021.