Financial Crime World

Oman Takes Firm Stance Against Money Laundering and Terrorism Financing

Oman’s regulatory bodies have strengthened their efforts to combat money laundering and terrorism financing by cracking down on financial institutions that fail to comply with anti-money laundering (AML) and counter-terrorism financing (CFT) regulations.

The National Centre for Financial Information: A Key Player in Enforcement

The National Centre for Financial Information (NCFI), under the administrative and financial autonomy of the Inspector General of Police and Customs, plays a crucial role in receiving, analyzing, and requesting reports on suspicious transactions. The Centre receives information on:

  • Cash transactions
  • Wire transfers
  • Cross-border declarations
  • Other supervisory authority threshold reports

These reports are used to identify potential money laundering or terrorism financing activities.

Cooperation from All Institutions Emphasized

The government has emphasized the importance of cooperation from all institutions in Oman, including governmental and non-governmental entities, to provide necessary information to the NCFI. This includes reports and information received from within and outside the country that may be relevant to the Centre’s duties.

Financial Institutions Under Scrutiny

Financial institutions and designated non-financial businesses and professions (DNFBPs) operating in Oman must have a compliance program in place to prevent money laundering, terrorism financing, and proliferation of weapons of mass destruction. The program should include:

  • Measures to identify and report suspicious transactions
  • Designation of a Money Laundering Reporting Officer (MLRO) who will be responsible for investigating and escalating institutional suspicions

Detecting Suspicious Financial Transactions

The NCFI has implemented measures to detect doubtful patterns in financial transactions. Suspicious Financial Transactions are those that:

  • Differ from the relevant customer’s profile, characteristics, or usual transaction pattern
  • Are reasonably suspected of being made with the intent of avoiding reporting requirements for due diligence
  • Involve funds allegedly obtained through criminal activity
  • Include unusually large cash transactions
  • Are carried out under several different names for the benefit of a single individual

A Clear Message from Oman’s Financial Sanctions Enforcement Agencies

In light of these efforts, Oman’s financial sanctions enforcement agencies are sending a clear message to institutions operating in the country: comply with AML/CFT regulations or face severe consequences. The government is committed to ensuring that its financial system is not used to launder money or finance terrorism and is working closely with international partners to achieve this goal.