Financial Crime World

Oman’s Financial Sector: AML/CTF Regulations and Depositor Protection

Strengthening Oman’s Financial Sector

In a bid to strengthen its financial sector, Oman has put in place robust regulations to combat money laundering and terrorist financing. The country’s Anti-Money Laundering and Combating Terrorism Financing Law (Royal Decree 30/2016) and Executive Regulations form the cornerstone of these efforts.

AML/CFT Regulations

According to the law, banks and other financial institutions are required to:

  • Maintain records and documents related to client identities, transactions, and activities for a period of 10 years.
  • Retain these records can be requested by judicial authorities, the National Financial Information Centre, and other regulatory bodies.

Banks are also obliged to notify the National Financial Information Centre immediately if they suspect any funds routed through them relate to proceeds of crime, money laundering, or terrorism financing. The Executive Regulations specify the types of records and documents that must be retained.

Depositor Protection Regime

In addition to AML/CFT regulations, Oman has a robust depositor protection regime in place. The Bank Deposit Insurance Scheme (BDIS) was established in 1995 to provide comprehensive insurance cover on specified deposits with banks operating in Oman. The scheme is funded through premiums collected from member banks and the Central Bank of Oman.

The BDIS aims to:

  • Maintain confidence in the banking system
  • Promote financial stability
  • Protect depositors’ interests

It is an integral part of the country’s financial safety net, providing risk coverage for depositors and encouraging savings.

Effective Management of the BDIS

The Central Bank of Oman has implemented a number of measures to ensure the effective management of the BDIS. These include:

  • Regular audits
  • Risk assessments
  • Monitoring of member banks’ compliance with scheme regulations

Conclusion

Oman’s AML/CFT regulations and depositor protection regime are designed to promote financial stability, protect depositors, and prevent criminal activities such as money laundering and terrorism financing. The country’s financial sector is well-positioned to support economic growth and development, thanks to these robust regulatory frameworks.