Financial Crime World

Financial Institutions Must Comply with Targeted Financial Sanctions

Oman’s National Counter Terrorism Committee Issues Decision

Muscat, Oman - The National Counter Terrorism Committee (NCTC) has issued a decision requiring financial institutions and designated non-financial businesses and professions to implement targeted financial sanctions against individuals and entities suspected of terrorism financing.

Key Requirements

  • Financial institutions must freeze funds and economic resources belonging to listed individuals and entities without delay.
  • Frozen assets must remain in place until the individual or entity is delisted from the United Nations or local list.
  • Confidentiality is essential: financial institutions must refrain from notifying the affected parties or any third party of their intention to freeze funds.

Implementing Measures

  • Financial institutions must develop internal controls and procedures to inspect customer databases against the list of designated individuals and entities.
  • Systems must be designed to detect customers and beneficial owners subject to targeted financial sanctions.

Supervision and Reporting

  • Supervisory authorities will verify that financial institutions and designated non-financial businesses and professions have implemented effective measures to comply with the decision.
  • Annual reports will be submitted to the NCTC, except in cases where violations are detected, in which case immediate notification is required.

Consequences of Non-Compliance

  • Failure to comply may result in administrative fines ranging from OMR 5,000 to OMR 20,000 for natural and legal persons, including financial institutions.
  • Regulatory authorities may impose additional measures on designated non-financial businesses and professions and non-profit associations and entities that fail to comply with their obligations.

Targeted Financial Sanctions Committee

  • The committee is responsible for managing the local list of targeted financial sanctions.
  • It may list individuals or entities based on reasonable grounds without the need for investigation or legal procedures.
  • The committee may collect information from relevant authorities to identify whether a person should be listed or not.

Exemptions and Liability Protection

  • Individuals and entities that comply with targeted financial sanctions in good faith are exempted from criminal, civil, or administrative liability for any losses or claims resulting from freezing funds or refusing to make them available.