Financial Crime World

Oman Pioneers Financial Inclusion with Strong Laws Against Money Laundering and Terror Financing

Combating Financial Crime with a Bold Approach

In a bold move to combat financial crime, Oman has emerged as a leader in the region by implementing strong legislative frameworks and regulations designed to prevent money laundering and terror financing. Speaking at a recent webinar on Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT), Tahir bin Salim al Amri, Executive President of the Central Bank of Oman (CBO), praised the Sultanate’s efforts to stay ahead of the curve.

The Importance of AML/CFT

“The twin evils of money laundering and terror financing are a major threat to financial stability,” said Al Amri. “Oman has taken proactive measures to enhance its systems and expand the scope of activation of its legal statutes, ensuring that our laws comply with the highest international standards.”

The Sultanate’s legal framework has been strengthened through a series of deterrent laws, starting from the 1990s. The key legislation includes:

  • Royal Decree 17/1999: Criminalized money laundering resulting from illicit trafficking in narcotic drugs and psychotropic substances
  • Law on Combating Money Laundering (Royal Decree 34 / 2002)
  • Full-fledged Law on Combating Money Laundering and Countering the Financing of Terrorism (Royal Decree 79 / 2010)

Directives from the Central Bank of Oman

The Central Bank of Oman has issued directives to all banks, exchange companies, and finance and leasing companies operating in the Sultanate about AML/CFT-related risks. Similarly, the Capital Market Authority (CMA) has issued its own directives to securities and insurance companies operating in the country.

Regional and International Recognition

Oman’s efforts to combat financial crime have been recognized regionally and internationally, with the country considered a “pioneer” in developing suitable legislation and regulations to tackle money laundering and terror financing. The Sultanate’s commitment to adopting best international practices is aimed at protecting its promising financial and economic systems from these transboundary crimes.

Conclusion

Oman’s proactive approach to combating financial crime has set an example for other countries in the region, demonstrating that a strong legislative framework and effective regulations are essential in preventing money laundering and terror financing.