Financial Crime World

African Nations Join Forces Against Money Laundering in Oman

International Cooperation to Combat Financial Crimes

African nations have joined forces with Oman to strengthen its anti-money laundering (AML) and combating the financing of terrorism (CFT) measures, in a joint effort to combat money laundering and terrorist financing.

MENAFATF and FATF Assessment

In July 2010, an assessment team from the Middle East and Northern Africa Financial Action Task Force (MENAFATF) and the Financial Action Task Force (FATF) conducted an on-site visit in Oman to evaluate its AML/CFT system. The evaluation revealed that Oman has set up a robust system in line with international standards.

Key Findings

  • Oman’s new AML/CFT law, enacted in July 2010, is robust and largely compliant with FATF recommendations.
  • However, the assessment team noted some shortcomings, including:
    • Gaps in the legal framework for preventive measures
    • Limited effectiveness of the legal system and institutional law enforcement framework

Shortcomings in Criminal Laws

Oman’s criminal laws on money laundering and terrorist financing are not fully comprehensive, with several areas requiring improvement. For instance:

  • The country’s money laundering offense does not cover the concealment or disguise of property disposition.
  • The criminal liability for ML does not extend to all legal persons.
  • The definition of terrorist acts is not fully consistent with the Terrorist Financing Convention.

Recommendations

The report recommended that Oman expedite the finalization of its draft Executive Regulations, enhance its Financial Intelligence Unit’s (FIU) capacity and experience in analyzing suspicious transaction reports (STRs), and utilize its full sanctioning powers for AML/CFT violations.

FIU Progress and Challenges

  • The assessment team commended Oman’s FIU for making progress in functioning effectively.
  • However, there is a need for improvement in the time spent analyzing STRs.

Supervisory Agencies

Oman’s supervisory agencies, including the Central Bank and Capital Markets Authority, have sufficient powers and resources to conduct their supervisory activities. Nevertheless:

  • There is a low level of corrective measures applied by these agencies, with only one administrative penalty imposed for an AML/CFT violation.

Conclusion

The assessment team concluded that while Oman has made progress in strengthening its AML/CFT regime, there are still areas that require improvement to ensure effective implementation of international standards. The findings will be published shortly, with the full mutual evaluation report expected to provide a comprehensive overview of Oman’s AML/CFT system and recommendations for improvement.