Enhancing Compliance and AML Efforts in Oman: New Risk Assessment Tools
The Capital Market Authority (CMA) in Oman has recently issued crucial instructions to strengthen risk assessment and suspicion indicators for capital market institutions, insurance and takaful companies, brokers, and agents. The regulations aim to prevent financial crimes and enhance compliance with the law on combating money laundering and terrorism financing.
New Regulations: A Boost to Anti-Money Laundering (AML) Efforts
The CMA has outlined the new instructions in two key decisions:
- Decision No. E/80/2021: This decision focuses on risk assessment and suspicion indicators for financial crimes.
- Decision No. E/81/2021: This decision outlines due diligence measures and authentication requirements for institutions.
Key Factors to Assess Financial Risks
Institutions must consider the following key factors when assessing risks:
- Customer Risk: The level of risk associated with each customer, including their financial history and behavior.
- Geographical Areas: Countries and regions where customers reside or operate, as well as the place of origin or destination of transactions.
- Nature of Products and Services: The types of products and services offered by institutions, including delivery channels for these products and services.
Implementing Due Diligence Measures
Institutions must implement due diligence measures to understand inherent risks and authenticate information. This includes:
- Understanding Inherent Risks: Identifying potential risks associated with each customer or transaction.
- Authenticating Information: Verifying the accuracy and authenticity of customer information and transaction details.
- Implementing Suspicion Indicators: Utilizing suspicion indicators from the National Centre for Financial Information to identify potential financial crimes.
By implementing these risk assessment tools, Oman’s financial sector is poised to enhance its AML efforts and prevent financial crimes.