Financial Crime World

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Oman Enhances Banking Regulations to Combat Financial Crime

The Sultanate of Oman has reaffirmed its commitment to international efforts to combat money laundering and terrorist financing.

International Cooperation

Oman has been a party to several key UN conventions, including the Convention against Illicit Traffic in Narcotic Drugs and Psychotropic Substances (1988) and the Convention against Transnational Organized Crime (2000). The country is also a member of the Financial Action Task Force (FATF) through the Gulf Cooperation Council (GCC) forum.

Regional Efforts

Oman has been an active participant in regional efforts to combat financial crime, serving as a founding member of the Middle East and North Africa Financial Action Task Force (MENA FATF).

Banking Regulations

Oman’s banking regulations have undergone significant changes over the years. Circular BM 610 dated June 5, 1991, and BM 880 dated December 29, 1999, emphasized the importance of customer due diligence and record-keeping in combating money laundering.

  • The country has since implemented various measures to enhance its anti-money laundering (AML) and counter-terrorism financing (CFT) regulations.
  • These include the adoption of FATF’s Forty Recommendations, which require financial institutions to:
    • Identify and report suspicious transactions
    • Develop policies and programs to combat AML/CFT
    • Provide training and audit functions

AML/CFT Unit

Oman has established a separate AML/CFT unit within the Banking Development Department of the Central Bank to focus on these efforts. The unit works closely with licensed financial institutions to:

  • Monitor their compliance with AML/CFT regulations
  • Conduct regular inspections and examinations to ensure that they are meeting the required standards

The country’s anti-money laundering law (Royal Decree 34 of 2002) and executive regulation (Royal Decree 72 of 2004) provide a legal framework for AML/CFT efforts. The National Committee for Combating Money Laundering, comprising representatives from concerned ministries, regulators, and law enforcement agencies, oversees the implementation of these regulations.

International Sanctions

Oman has been proactive in implementing international sanctions and freezing assets of individuals and entities involved in terrorist activities. The country’s banking system does not have an informal funds transfer system, and it has a robust framework for reporting suspicious transactions and sharing information with other countries.

Conclusion

Overall, Oman’s efforts to combat financial crime demonstrate its commitment to maintaining financial stability and integrity in the region.