Financial Crime World

Financial Crime Prevention Measures in Oman Need Improvement: Report

A recent report evaluating anti-money laundering (AML) and combating the financing of terrorism (CFT) measures in Oman has identified several areas where the country needs to improve its financial crime prevention framework.

AML/CFT System Generally in Line with International Standards

The assessment, conducted by a joint team from the Middle East and North Africa Financial Action Task Force (MENAFATF) and the Financial Action Task Force (FATF), found that Oman’s AML/CFT system is generally in line with international standards. However, there are still gaps and shortcomings that need to be addressed.

Areas of Concern

The report highlighted several areas of concern, including:

  • Low Number of Convictions: The report noted that the number of convictions for money laundering is low.
  • Lack of Investigations and Prosecutions: There is a lack of investigations, prosecutions, and convictions relating to terrorist financing.
  • Insufficient Confiscation and Seizure Measures: The effectiveness of Oman’s legal framework for confiscation, seizure, and provisional measures is insufficient, with a low number of confiscations reported.

Law Enforcement and Supervision

The report praised the Financial Intelligence Unit (FIU) for its progress in functioning effectively. However, it noted that 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 report also highlighted concerns about the supervisory activities of the Central Bank of Oman and Capital Markets Authority. While both authorities have sufficient powers and financial resources, they have not utilized their full sanctioning powers for AML/CFT violations. Only one administrative penalty has been imposed so far for an AML/CFT violation.

Recommendations

The report concluded that while Oman has made progress in establishing a robust AML/CFT system, there are still areas where the country needs to improve its financial crime prevention measures. The authorities should prioritize:

  • Finalization of Executive Regulations: The finalization of the Executive Regulations corresponding to the new AML/CFT law is crucial.
  • Implementation of Effective Corrective Measures: The implementation of effective corrective measures is necessary to address the shortcomings identified in the report.

Overall, the report emphasized the need for Oman to prioritize financial crime prevention and improve its AML/CFT framework to effectively prevent and combat money laundering and terrorist financing.