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Central Bank of Oman Issues New Guidelines on Customer Due Diligence

The Central Bank of Oman has issued new guidelines for financial institutions in the country to enhance customer due diligence (CDD) measures, aiming to prevent money laundering and terrorism financing by ensuring that financial institutions properly identify and verify the identity of their customers.

Key Requirements

Under the new guidelines, financial institutions are required to identify and verify the identity of:

  • Trustees, managers, directors or persons in equivalent positions
  • Settlors, founders or persons in equivalent positions
  • The trust or legal arrangement, including any persons settling assets into the trust or legal arrangement
  • Protectors or persons in equivalent positions exercising ultimate effective control over the trust
  • Beneficiaries or persons in equivalent positions
  • Signatories

Enhanced CDD Measures

Financial institutions are also required to apply enhanced CDD measures for non-face-to-face business relationships or transactions, including:

  • Requesting certification of documents
  • Applying additional verification measures

Monitoring and Reporting

Financial institutions are required to:

  • Monitor all transactions and business relations with persons and financial institutions from countries identified as higher-risk by the Committee
  • Maintain records of customer due diligence processes, transactions, and risk assessments for at least 10 years after the relationship has ended or a transaction has been carried out

Internal Policies and Controls

Financial institutions are required to:

  • Develop and implement anti-money laundering (AML) and combating the financing of terrorism (CFT) policies, controls, and procedures that ensure compliance with the Law and any relevant decisions and instructions issued by the Central Bank of Oman and the Center
  • Approve these policies, controls, and procedures by the financial institution’s board of directors or senior management

Conclusion

The new guidelines aim to enhance CDD measures in the country and prevent money laundering and terrorism financing. Financial institutions are required to implement these measures to ensure compliance with the Law and maintain the integrity of the financial system.