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Oman’s New Anti-Corruption Law: A Game-Changer for International Business

Muscat, Oman - In a significant move to combat corruption and organized crime, the Omani government has introduced sweeping changes to its Penal Code, effective [date]. The new law aims to prevent corrupt practices among public officials and impose severe penalties on those found guilty.

What’s Changed?

The amended code introduces harsher punishments for corruption-related offenses, including embezzlement, misappropriation of public funds, and bribery. Public officials who accept bribes or engage in fraudulent activities can face imprisonment terms ranging from three to five years.

Moreover, the law now imposes corporate liability on companies that fail to prevent corrupt practices by their representatives, directors, or agents. Companies found guilty can be fined up to OMR 50,000 (approximately USD 130,000) and even ordered to be dissolved.

The Impact on International Business

The new law sends a strong message to international businesses operating in Oman: compliance is no longer an option, but a necessity. With the introduction of corporate liability provisions, companies must ensure that their representatives, sub-contractors, and agents adhere to strict anti-corruption standards.

Companies should:

  • Conduct thorough due diligence on external partners
  • Extend compliance policies to cover these third parties
  • Maintain transparency in all transactions

Failure to comply can result in severe financial penalties, damage to reputation, and even legal action against the company.

Key Takeaways for International Businesses

  1. Conduct thorough due diligence: Verify the integrity of your representatives, sub-contractors, and agents.
  2. Extend compliance policies: Ensure that these third parties adhere to your company’s anti-corruption standards.
  3. Maintain transparency: Keep accurate records of all transactions and business dealings.
  4. Regularly audit: Conduct regular audits to detect any potential corruption or non-compliance issues.
  5. Train employees: Provide comprehensive training on compliance obligations and anti-corruption policies.

Conclusion

The new Omani Penal Code presents a significant opportunity for international businesses operating in Oman to review and update their compliance policies, conduct training sessions, and review third-party agreements. By doing so, companies can not only avoid financial penalties but also maintain a positive reputation and contribute to a corruption-free business environment in the Sultanate.

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