Financial Crime World

Regulatory Bodies for Financial Crime in Oman: Strengthening International Initiatives Against Money Laundering and Terrorism Financing

The Sultanate of Oman has made significant strides in combating money laundering and financing of terrorism, demonstrating its commitment to international initiatives. The country’s efforts are guided by various regulatory bodies and laws that provide a comprehensive framework for preventing financial crime.

International Agreements and Membership

Oman was one of the first parties to sign:

  • UN Convention against Illicit Traffic in Narcotic Drugs and Psychotropic Substances (1988)
  • UN Convention against Transnational Organized Crime (2000)

Additionally, Oman is a member of the Financial Action Task Force (FATF) through the GCC forum. It is also a founding member of the Middle East and North Africa Financial Action Task Force (MENA FATF).

Legislative Framework

Oman has implemented various policies and programs to prevent financial crime:

  • Circular BM 610 (1991): Emphasized customer due diligence in financial transactions
  • Circular BM 880 (1999): Highlighted the importance of the financial system in combating money laundering

The country’s legislative framework includes:

  • Anti-Money Laundering Law (Royal Decree 34/2002)
  • Executive Regulation (Royal Decree 72/2004)
  • Penal Code and other laws

AML/CFT Unit and Monitoring

The AML/CFT Unit within the Banking Development Department of the Central Bank provides focused attention and interactions on financial crime issues. Licensed institutions are monitored through:

  • Periodical reports
  • On-site examinations: Annual examinations and special appraisal/investigation visits

National Committee for Combating Money Laundering

The National Committee, comprising high-level representatives from concerned ministries, regulators, and law enforcement authorities, plays a crucial role in spearheading the AML/CFT regime in Oman.

Conclusion

Oman’s efforts demonstrate its commitment to international initiatives against money laundering and terrorism financing. The country is working diligently to address FATF recommendations for improvement and continues to strengthen its anti-money laundering framework through regular reporting of suspicious transactions, follow-up reviews, and information-sharing.