Oman Committed to International Anti-Money Laundering Efforts

The Sultanate of Oman has made significant commitments to combat money laundering and the financing of terrorism. As a signatory to several key treaties, including the UN Convention against Illicit Traffic in Narcotic Drugs and Psychotropic Substances (1988) and the UN Convention against Transnational Organized Crime (2000), Oman is working closely with international organizations to prevent these illicit activities.

Membership in International Organizations

Oman is a member of the Financial Action Task Force (FATF), which it joined through the GCC forum. Additionally, the country is a founding member of the Middle East and North Africa Financial Action Task Force (MENA FATF).

Banking Sector Regulations

The Oman banking sector has had customer due diligence requirements in place since 1991 and 1999, emphasizing the importance of combating money laundering by enhancing customer identification, record-keeping, and reporting suspicious transactions.

Improvements to AML Framework

In recent years, Oman has continued to strengthen its anti-money laundering (AML) framework by adopting additional recommendations from FATF. For instance, Circular BM 923, issued in 2001, introduced regular reporting of suspicious transactions and strengthened information-sharing between financial institutions.

AML/CFT Regime Oversight

The country’s AML/CFT regime is overseen by a dedicated unit within the Banking Development Department of the Central Bank. This unit works closely with licensed financial institutions, which are subject to regular reporting and on-site examinations. The annual examinations cover all licensees, while special appraisal/investigation visits are conducted as needed.

Anti-Money Laundering Laws

Oman’s anti-money laundering laws include:

• Anti-Money Laundering Law (Royal Decree 34 of 2002): Mandates extensive requirements for financial institutions and enables wide-ranging actions to combat money laundering.
• Executive Regulation (Royal Decree 72 of 2004): Provides further guidance on the implementation of the Anti-Money Laundering Law.

National Committee for Combating Money Laundering

The National Committee for Combating Money Laundering, comprising high-level representatives from concerned ministries, regulators, and law enforcement agencies, plays a key role in overseeing Oman’s AML/CFT regime.

Recognition by FATF

Oman’s efforts to combat money laundering have been recognized through a successful assessment by FATF in 2003, which confirmed the country’s acceptable standards while also providing recommendations for improvement.