Financial Crime Definition in Oman: Strengthening Measures Against Money Laundering and Terrorism Financing
Oman’s commitment to combating money laundering and terrorism financing has been unwavering, with the country playing an active role in international initiatives. In this article, we will explore the measures taken by Oman to strengthen its stance against financial crimes.
Oman’s Commitment to Combating Financial Crimes
As a founding member of the Middle East and North Africa Financial Action Task Force (MENA FATF), Oman has demonstrated its commitment to combating financial crimes. In 1991 and 1999, the country issued circulars emphasizing the importance of customer due diligence and record-keeping, as well as special attention to large, unusual, and suspect transactions.
Strengthening Measures Against Money Laundering
Oman has continued to strengthen its measures against money laundering, with a focus on compliance and enforcement. The country has:
- Implemented regular reporting requirements for suspicious transactions
- Enhanced information-sharing among financial institutions and law enforcement agencies
- Conducted rigorous audits and compliance reviews
Bilateral and Multilateral Cooperation
Despite having no informal funds transfer system in place, Oman has established bilateral and multilateral treaties for cooperation and interaction with other countries.
FATF Assessment and Recommendations
In 2003, the country underwent a Financial Action Task Force (FATF) assessment, which confirmed its acceptable standards while also providing recommendations for improvement.
Dedicated Unit for AML/CFT Monitoring
To ensure effective implementation of anti-money laundering and combating the financing of terrorism (AML/CFT) measures, Oman has established a dedicated unit within the Banking Development Department of the Central Bank. The unit focuses on:
- Monitoring and supervising licensed institutions through periodical reports and on-site examinations
- Enhancing cooperation with other countries and international organizations
AML/CFT Regime in Oman
Oman’s AML/CFT regime is supported by the Anti-Money Laundering Law (Royal Decree 34 of 2002) and Executive Regulation (Royal Decree 72 of 2004), which mandate extensive requirements and enable wide-ranging actions. The National Committee for Combating Money Laundering, comprising high-level representatives from concerned Ministries, Regulators, and Law Enforcement Authorities, spearheads the AML/CFT regime in Oman.
Global Recognition
Oman’s commitment to combating financial crimes has been recognized globally, with the country being praised for its efforts to prevent money laundering and terrorist financing. As a result, Oman has established itself as a leader in the region, setting an example for other countries to follow.
By strengthening its measures against money laundering and terrorism financing, Oman demonstrates its commitment to maintaining a safe and stable financial system, while also contributing to international efforts to combat financial crimes.