Oman’s Money Laundering Landscape: A Low-Risk Jurisdiction?
The 2016 International Narcotics Control Strategy Report (INCSR) from the US Department of State has classified Oman as a Monitored Jurisdiction with a lower risk for money laundering and terrorism financing. But what does this mean, and how does it compare to FATF’s assessment?
FATF Assessment
The Financial Action Task Force (FATF) has not yet classified Oman as having significant risks related to money laundering and terrorism financing or as having strategic shortcomings in anti-money laundering and counter-terrorism funding regulations. In its 2011 Mutual Evaluation Report, FATF found that Oman was largely compliant with the majority of the recommendations, with some areas requiring improvement.
Anti-Money Laundering Laws in Oman
Oman has adopted CFT recommendations and imposed further obligations, such as:
- Regular reporting of suspicious transactions
- Follow-up and review
- Information-sharing
- No informal funds transfer system
Treaties for collaboration and contacts exist at both bilateral and multinational levels. The country’s Central Bank operates a distinct AML/CTF Unit, which receives specialized attention and exchanges on the topic.
Regulatory Framework
Licensed institutions are kept under observation and oversight through:
- On-site inspections
- Quarterly reports
- Annual tests
- Special appraisal visits
The country’s Anti-Money Laundering Law and Executive Regulation mandate stringent requirements and permit broad-ranging actions.
National Committee for Combating Money Laundering
The National Committee, led by senior representatives from relevant Ministries, Regulators, and Law Enforcement Authorities, is responsible for overseeing the AML/CFT regime in Oman.
Sanctions
Oman is not currently subject to any international sanctions. The country is a member of the Arab League, which has imposed sanctions on Syria, including:
- Halting communications with the central bank
- Suspending funding for projects
- Prohibiting top officials from visiting other Arab nations
- Freezing assets belonging to President Bashar al-Assad’s administration
Conclusion
Oman’s money laundering landscape appears to be low-risk, with a robust regulatory framework in place. However, it is essential for financial institutions and individuals to remain vigilant and comply with the country’s anti-money laundering laws to prevent illicit activities.