On 7 December 2019, the Maldives Chartered Accountants Bill (“the Bill”) was presented to the Parliament. The Bill proposes to establish the Institute of Chartered Accountants of the Maldives (ICAM), a separate legal entity, to regulate, develop and oversee the accountancy profession in the country.

Once established, ICAM will have the authority to determine financial accounting standards and auditing standards to be used in the private sector. ICAM will also have the sole authority to grant, suspend or revoke “licensed auditor” status to practitioners.

ICAM will be governed by a nine-member Council, comprising the following members:

• Seven members elected by members of ICAM (the President and Vice President of the Council will be elected from amongst these 7 members)
• The Auditor General
• The Financial Controller of the State

The Bill proposes that the above Council structure will come into effect after a four-year transitional period, during which the Council will comprise the Auditor General (who will act as the Council President), the Financial Controller of the State, a representative of the Maldives Inland Revenue Authority, two representatives of the Auditor General’s Office, and two private sector practitioners appointed by the Auditor General.

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 Bill is expected to be finalised in the Parliament’s first session in 2020.