Oman Cracks Down on Money Laundering: Definition and Consequences
Oman has taken significant steps to combat financial crimes by defining money laundering and introducing measures to prevent it.
Definition of Money Laundering
Money laundering is defined as the exchange or transfer of funds with the intent to disguise or conceal the nature and source of the proceeds, or to help individuals who have committed predicate crimes escape punishment. This includes concealing the real nature, source, location, movement, and ownership of funds and their relevant rights.
Terrorist Financing: A Serious Offence
Oman has also criminalized terrorist financing, which is defined as any act that intends to cause death, bodily injury, or terrorize others. This includes participating in, planning, or contributing to acts that constitute an offence under international treaties and conventions signed by Oman.
Financial Institutions Under Scrutiny
Oman’s financial institutions are expected to be vigilant against money laundering and terrorist financing. These institutions include:
- Banks
- Insurance companies
- Brokers
- Agents
- Any person who practices business activities for or on behalf of customers
These institutions must take customer due diligence measures to identify their clients, verify their identities, and understand the purpose of their business relationships.
Business Relationships Under Microscope
A business relationship is defined as any connection between a financial institution and its customer related to the services provided. Funds, in this context, refer to any type of asset or property, whether electronic, digital, or physical, including:
- Currencies
- Securities
- Properties
- Rights
Freezing and Confiscation Measures
The government has introduced measures to freeze funds suspected of being linked to money laundering or terrorist financing crimes. Additionally, confiscation of such proceeds is a permanent deprivation and seizure under a final judgment by a competent court.
National Committee Takes Charge
Oman’s National Committee for Combating Money Laundering and Terrorism Financing is responsible for developing a national strategy to combat these crimes in coordination with other relevant entities. The committee is chaired by the Executive President of the Central Bank of Oman, and its members include representatives from various concerned organizations.
Reporting Suspicions
The National Centre for Financial Information is tasked with receiving, requesting, and analyzing reports and information suspected of being proceeds of crime or connected to money laundering or terrorist financing crimes. It then reports these findings to the Inspector General of Police and Customs.
International Cooperation
Oman works closely with international organizations such as the Financial Action Task Force (FATF) to combat money laundering and terrorist financing. FATF was established in 1989 by the Group of Seven industrial nations to develop national and global measures to combat these crimes.
In Conclusion
Oman’s efforts to combat money laundering and terrorist financing are aimed at protecting its financial system from illegal activities and maintaining international cooperation to prevent these crimes.