Maldivian National Security Adviser Ameen Faisal said an Interpol team based in Sri Lanka to monitor airline passenger lists during the World Cup had spotted Mohamed and raised the alarm.
However, Faisal said there was no evidence to suggest that Mohamed was involved in any plot to disrupt games even though there was an Interpol notice against him for suspected involvement in a 2007 bomb attack in Male.
"We have no knowledge of Iqbal’s involvement in any planned attack on the ICC cricket World Cup, which has been alluded to in the press over the last few days," Faisal said in a statement.
Last week, Interpol chief Ronald Noble said "a terrorist" had been arrested after leaving Karachi for the Maldives.
Speaking at the same press conference, Pakistani Interior Minister Rehman Malik said the arrest would "make sure that the World Cup remained safe".
Police in the three World Cup host countries of Sri Lanka, India and Bangladesh have thrown blanket security over the tournament, which ends in Mumbai on Saturday.The World Cup matches in Sri Lanka and Bangladesh ended without incident.