Oman Enhances Beneficial Ownership Transparency with New Regulations
In an effort to combat corruption, money laundering, and the financing of terrorism, while promoting greater transparency in business dealings, Oman has introduced new regulations requiring companies to disclose beneficial ownership information.
Background
As part of its commitment to transparency and good governance, Oman has issued Ministerial Decision No. 630/2022, effective December 2022, which mandates all companies incorporated in the Sultanate of Oman, except publicly listed SAOG companies, to maintain a register detailing the identity of shareholders holding 25% or more of the company’s shares.
Regulations and Requirements
The regulations take effect from January 29, 2023, and stipulate that the register must be kept at the registered headquarters of the company. The register may also be maintained electronically to ensure easy access and tracing of ownership structures.
- The aim is to enable the Ministry of Commerce, Industry and Investment Promotion to easily identify the ultimate beneficiaries behind complex corporate structures.
- The regulations require companies to maintain accurate and up-to-date information on beneficial owners, ensuring transparency in business dealings.
Consequences of Non-Compliance
Failure to comply with these regulations could result in penalties, including:
- Fines of up to OMR 1,000
- Suspension of a company’s commercial registration for up to three months
- Double penalties for repeat offenders
Impact and Significance
The introduction of these new regulations is a significant step forward in promoting transparency and combating financial crimes in Oman. By requiring companies to disclose beneficial ownership information, the country is better equipped to tackle corruption and protect its economy from illicit activities.
These measures demonstrate Oman’s commitment to maintaining a transparent and corruption-free business environment, which will attract foreign investment and promote economic growth.