Financial Crime World

Oman Introduces Compliance Procedures for Financial Institutions to Combat Money Laundering and Terrorism Financing

Oman has introduced a series of laws, regulations, and guidelines aimed at combating money laundering and terrorism financing in its financial institutions. The measures are designed to ensure compliance with international standards and prevent the misuse of the financial system.

Regulatory Framework

The regulatory framework includes:

  • Anti-money Laundering and Combating Financing Terrorism Law No 30/2016: This law sets out the legal framework for combating money laundering and terrorism financing in Oman.
  • Decision No E/81/2021: This decision provides instructions to insurance and takaful companies, brokers, and agents on implementing the provisions of the law.
  • Decision No E/80/2021: This decision instructs capital market institutions on implementing the provisions of the law.
  • International Standards on Combating Money Laundering and Financing of Terrorism (FATF Recommendations): These standards provide guidelines for combating money laundering and terrorism financing.
  • Guidelines from the National Committee for Combating Terrorism: The committee has issued guidelines for implementing resolutions of the United Nations Security Council under Chapter VII of the UN Charter.

Compliance Requirements

Financial institutions in Oman are required to comply with these regulations, which include:

  • Conducting Customer Due Diligence: Financial institutions must conduct due diligence on their customers to ensure they are not involved in money laundering or terrorism financing.
  • Reporting Suspicious Transactions: Financial institutions must report any suspicious transactions to the relevant authorities.
  • Implementing Controls: Financial institutions must implement controls to prevent money laundering and terrorism financing.
  • Maintaining Records: Financial institutions must maintain records of their activities and provide information to regulators upon request.

Consequences of Non-Compliance

Financial institutions that fail to comply with these regulations may face penalties, including:

  • Fines
  • Revocation of Licenses

The Oman government has emphasized the importance of compliance in preventing money laundering and terrorism financing, and regulators will be closely monitoring financial institutions to ensure adherence to these regulations.

Importance of Compliance

The introduction of these regulations is seen as a significant step towards strengthening Oman’s anti-money laundering and counter-terrorism financing regime. Financial institutions are advised to familiarize themselves with the new requirements to prevent money laundering and terrorism financing and maintain the integrity of the financial system.

With the increasing threat of money laundering and terrorism financing, it is essential for financial institutions to take proactive steps to prevent these illegal activities and maintain the integrity of the financial system.