Oman Takes Steps to Combat Financial Crime with New Regulatory Bodies

In an effort to strengthen its defenses against financial crime, Oman’s regulatory bodies have issued new instructions to capital market institutions and insurance companies on the implementation of anti-money laundering (AML) and combating terrorism financing provisions.

Implementing Anti-Money Laundering and Combating Terrorism Financing Provisions

The Capital Market Authority (CMA) has issued two decisions, E/80/2021 and E/81/2021, outlining the factors that must be taken into account when conducting risk assessments and identifying suspicious transactions. These instructions aim to help institutions better understand the inherent risks associated with their customers and transactions, and to implement effective due diligence measures.

Factors to Consider in Risk Assessments

According to the CMA’s guidelines, financial institutions must assess the level of risk posed by each customer based on the following factors:

• Geographical location
• Origin or destination of transactions
• Nature of products and services offered
• Countries in which they operate and practice business
• Delivery channels used for products and services

Due Diligence Measures

The CMA has emphasized the importance of verifying customer information and implementing due diligence measures, particularly when dealing with high-risk customers or transactions that may be suspicious. Financial institutions are also required to report any suspicious activities to the National Centre for Financial Information.

Impact on Oman’s Reputation and Confidence among Investors

The new instructions are seen as a major step forward in Oman’s efforts to combat financial crime, and are expected to enhance the country’s reputation as a stable and secure financial hub. The move is also likely to increase confidence among investors and businesses operating in Oman, and to provide a more robust framework for detecting and preventing money laundering and terrorist financing activities.

Conclusion

Oman’s regulatory bodies have taken a significant step towards strengthening its defenses against financial crime by issuing new instructions on AML and combating terrorism financing provisions. The implementation of these guidelines is expected to have a positive impact on the country’s reputation and confidence among investors, making Oman an even more attractive destination for businesses and investments.