Financial Crime World

African Nations Unite Against Money Laundering: Oman Leads by Example

In a bid to combat money laundering and financing of terrorism, the Sultanate of Oman has taken a leading role in international initiatives.

AML/CFT Initiatives

Oman is a founding member of the Middle East and North Africa Financial Action Task Force (MENA FATF), which has consistently updated its legal, institutional, and procedural requirements over the years. The country’s commitment to anti-money laundering (AML) and combating the financing of terrorism (CFT) is evident in its membership of various international organizations, including:

  • United Nations Convention against Illicit Traffic in Narcotic Drugs and Psychotropic Substances, 1988
  • UN Convention against Transnational Organized Crime, 2000

Strengthening AML/CFT Regime

Oman’s AML/CFT regime is strengthened by a range of measures, including:

  • Customer due diligence requirements for banks since the early days
  • Various circulars to enhance its role in combating money laundering, referring specifically to FATF’s Forty Recommendations
  • On-site examinations and periodical reports from the Central Bank of Oman

Key Players

The Central Bank of Oman plays a crucial role in monitoring and supervising licensed institutions. The bank’s AML/CFT Unit, functioning under the Banking Development Department, provides focused attention and interactions on the subject.

Implementation of UN Resolutions

Oman has taken steps to implement relevant UN Resolutions, including:

  • Blocking accounts and other measures
  • Anti-Money Laundering Law (Royal Decree 34 of 2002)
  • Executive Regulation (Royal Decree 72 of 2004)
  • Penal Code and other laws provide a comprehensive framework for AML/CFT

National Committee for Combating Money Laundering

The National Committee for Combating Money Laundering, comprising high-level representatives from concerned Ministries, Regulators, and Law Enforcement Authorities, spearheads Oman’s AML/CFT regime. The country’s efforts have been recognized by FATF, which subjected Oman to an assessment in 2003, resulting in confirmation of acceptable standards as well as recommendations for improvement.

Transparency and Accountability

With no Informal Funds Transfer System in place, Oman has ensured that its financial system is transparent and accountable. Bilateral and multilateral treaties for cooperation and interaction with other countries also facilitate the country’s efforts against money laundering.

Conclusion

Overall, Oman’s commitment to AML/CFT demonstrates its determination to combat money laundering and financing of terrorism, while upholding international standards and best practices.