Financial Crime World

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Financial Crime Definition in Oman: What You Need to Know

A recent report has shed light on Oman’s anti-money laundering (AML) and combating the financing of terrorism (CFT) measures, revealing a robust legal framework but some areas for improvement. The report, conducted by a joint assessment team from the Middle East and Northern Africa Financial Action Task Force (MENAFATF) and the Financial Action Task Force (FATF), evaluated Oman’s AML/CFT system at the time of its on-site visit in July 2010.

Key Findings

  • Oman’s new AML/CFT law, enacted in July 2010, was deemed robust by the assessment team.
  • However, the country is still finalizing the update of its Executive Regulations to correspond to the new law, which has caused some gaps in the legal framework for preventive measures.
  • Notwithstanding these shortcomings, Oman’s overall legal compliance with FATF Recommendations is high.
  • Oman has criminalized money laundering and terrorist financing to a large extent, but there are some areas where the laws do not fully align with international standards.
  • The country’s legislation does not cover the concealment or disguise of property in relation to money laundering, and the criminal liability for money laundering does not extend to all legal persons.

Law Enforcement

  • Oman’s Financial Intelligence Unit (FIU) has made progress in functioning effectively, but there is still room for improvement in terms of analyzing suspicious transaction reports (STRs).
    • The FIU should continue to enhance its capacity and experience in analyzing STRs to expedite the time between reporting and dissemination.
  • The Royal Omani Police and Public Prosecution Office are empowered to conduct money laundering and terrorist financing investigations, but there have been few convictions for these crimes.
  • Financial Institutions (FIs) and Designated Non-Financial Businesses and Professions (DNFBPs) are subject to supervisory activities by the Central Bank of Oman and Capital Markets Authority, but there is a need for more effective enforcement of AML/CFT requirements.

Conclusion

Oman’s AML/CFT system has made significant progress, but there are still areas where improvement is needed. The country should:

  • Finalize the update of its Executive Regulations to address gaps in the legal framework.
  • Enhance the FIU’s capacity and experience in analyzing STRs.
  • Utilize its full sanctioning powers for violation of AML/CFT requirements.