Maijlis Agama Islam Wilayah Persekutuan (MAIWP) was formed in February 1, 1974 in conjunction with the establishment of the Federal Territory of Kuala Lumpur. Its establishment was totake care of Islamic affairs in the Federal Territory of Kuala Lumpur which was previously placed under the Selangor state government. MAIWP was also responsible for managing the affairs of Muslims in Labuan and Putrajaya following its announcement as their respective Federal Territories on April 16, 1984 and February 1, 2001. The establishment of MAIWP is set out in the provisions of the Federal Constitution and the Administration of Islamic Law (Territory). (Federal Territories) 1993 [Act 505].

Article 3 (5) of the Federal Constitution provides that:

“Not withstanding anything in this Constitution, the Yang di-Pertuan Agong shall be the Head of Islamic Religion in the Federal Territories of Kuala Lumpur, Labuan and Putrajaya; and for this purpose Parliament may by law make provisions to regulate the affairs of Islam and to establish a Council to advise the House of Representatives on matters relating to Islam.” Section 4 (1), Act 505 further states: - "There shall be a body known as "Majlis Agama Wilayah Persekutuan", to advise the Yang di-Pertuan Agong on matters relating to Islam."

MAIWP’s jurisdiction is explained through Section 31, Act 505 which states;

“This organization should assist and advise His Majesty The King in regards to Islamic affairs in all Federal Terretories, except for the Syarak Law as well as governing justice, and in all similar matters be the primary governing party in all Federal Terretories prior to His Majesty The King, unless stated otherwise in said Act.