Oman Introduces Beneficial Ownership Requirements for Companies

Enhancing Transparency in Corporate Governance

The Sultanate of Oman has taken a significant step towards promoting transparency and combating illicit financial activities by introducing regulations requiring non-publicly listed companies to disclose their ultimate beneficial owners.

Ministerial Decision No. 630/2022: A Key Milestone

On December last year, the Omani government issued Ministerial Decision No. 630/2022, mandating all non-publicly listed companies incorporated in Oman to maintain a register of information related to shareholders who own 25% or more of the company’s shares. This register can be kept either at the company’s registered headquarters or electronically.

Objectives Behind the Regulations

The primary objective behind this move is to provide a clearer picture of ownership structures within the country, enabling authorities to look through multiple layers of ownership and identify ultimate beneficiaries. This enhanced transparency will help prevent illicit activities such as money laundering and terrorism financing, which often involve complex webs of ownership.

Consequences of Non-Compliance

Companies failing to comply with these regulations may face penalties, including fines of up to OMR 1,000 or suspension of commercial registration for up to three months. Repeat offenders will be subject to doubled penalties.

Compliance Deadline: January 29, 2024

All companies affected by the regulations must comply with their provisions starting from January 29 this year. The Ministry of Commerce, Industry and Investment Promotion is responsible for enforcing these regulations and ensuring that companies meet their obligations.

Conclusion

The introduction of beneficial ownership requirements in Oman marks a significant step towards promoting transparency and combating illicit financial activities within the country. Companies must ensure compliance with these regulations to avoid penalties and maintain their commercial registration. The Omani government’s efforts will undoubtedly contribute to creating a more transparent corporate environment, ultimately benefiting both local businesses and international investors.