Financial Crime World

Oman Takes the Lead in Combating Financing of Terrorism with Strong Legislation and Regulations

Muscat, Oman

The Sultanate of Oman has emerged as a pioneer in the region in developing suitable legislation and regulations to combat money laundering and terror financing. According to Tahir bin Salim al Amri, Executive President of the Central Bank of Oman (CBO), during a webinar on Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT):

Strengthened Capabilities

The Sultanate has continued to strengthen its capabilities by taking proactive measures and practical steps to enhance the efficiency of its systems and expand the scope of activation of its legal statutes. Oman’s laws and regulations comply with the highest applicable international standards, including:

  • The original Forty Recommendations drawn up by the Financial Action Task Force (FATF)
  • Decisions and recommendations of FATF in the Middle East and North Africa (MENA-FATF)
  • Various UN Security Council resolutions
  • Operational agreements and UN treaties ratified by the Sultanate

Best International Practices

Oman has adopted best international practices to effectively combat money laundering and terror financing, aiming to ward off these transboundary crimes away from Oman’s promising and solid financial and economic systems. The country believes in adopting best international practices applied in combating money laundering and combating the financing of terrorism.

History of Efforts

The Sultanate’s efforts to tackle money laundering and terror financing can be traced back to the 1990s when the first deterrent legislative actions were adopted. Notable is Royal Decree 17/1999, which promulgated the law on combating narcotic drugs and psychotropic substances, criminalising money laundering resulting from illicit trafficking in narcotic drugs and psychotropic substances.

  • 2002: Law on Combating Money Laundering
    • Promulgated by Royal Decree 34/2002
  • 2010: Full-Fledged Law on Combating Money Laundering and Countering the Financing of Terrorism
    • Promulgated by Royal Decree 79/2010
    • Strengthened further by Royal Decree 30/2016

Central Bank Directives

The Central Bank of Oman has also issued its own directives to all banks, exchange companies, and finance and leasing companies operating in the Sultanate about AML/CFT related risks. Similarly, the Capital Market Authority (CMA) has issued its own directives to securities and insurance companies operating in the Sultanate.

By adopting strong legislation and regulations, Oman is committed to effectively combating money laundering and terror financing, ensuring a secure and stable financial system for its citizens and businesses.