Financial Crime World

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Oman Amends Penal Code to Combat Corruption and Bribery

In a significant move to curb corruption and bribery, the Sultanate of Oman has amended its Penal Code to introduce stricter regulations and penalties for individuals and companies involved in corrupt practices.

Combating Corruption

The amended Penal Code includes anti-corruption provisions aimed at preventing corruption from occurring in the first place. According to Article 207-212 of the Penal Code:

  • Seeking and accepting bribes as a public official, as well as offering a bribe to a public official, are criminal offenses.
  • Any gift or hospitality provided with the intent to influence a public official can be considered a bribe.

Consequences of Non-Compliance for Companies

In addition to individual penalties, the amended Penal Code introduces corporate liability provisions. This means that companies can be held criminally liable for offenses committed by their representatives, directors, or agents. The implications are significant for international businesses operating in Oman:

  • Companies may face fines and even dissolution if found guilty of involvement in corrupt practices.
  • To avoid these consequences, companies must ensure they have effective compliance policies in place, including:
    • Due diligence on external representatives and sub-contractors
    • Regular training and audits to prevent and detect financial crime or non-compliance related issues

Focus on Transnational Organised Crime

The new Penal Code includes a separate chapter dedicated to transnational organised crime. According to Article 146 of the Penal Code:

  • A group of at least three participants can constitute an organised criminal group.
  • Participation or assistance with regard to their activities is considered a severe criminal offense.

Significance for International Business

The amended Penal Code provides an opportunity for international businesses operating in Oman to:

  • Review and update compliance policies
  • Conduct training sessions
  • Review third-party agreements

It is essential for companies to implement proper compliance policies to prevent corporate crime, avoid conflicts of interest, maintain transparency, and diligent documentation.

In conclusion, the recent amendments to Oman’s Penal Code aim to combat corruption and bribery. It is crucial for international businesses operating in the Sultanate to be aware of these changes and take steps to ensure compliance.