Financial Crime Definition in Oman Evaluated

The Middle East and Northern Africa Financial Action Task Force (MENAFATF) and the Financial Action Task Force (FATF) have recently evaluated the anti-money laundering (AML) and combating the financing of terrorism (CFT) measures in place in Oman.

Evaluation Findings

The evaluation found that Oman has established an AML/CFT system largely in line with international standards. However, the report identified several shortcomings in the legal framework, including:

Gaps in the definition of money laundering and terrorist financing
Lacking effectiveness of the legal system and related institutional law enforcement framework

Recommendations for Improvement

The evaluation recommended that Oman:

Finalize the update of its Executive Regulations to fill gaps in the legal framework for preventive measures
Utilize its full sanctioning powers for violations of AML/CFT requirements
Improve the time spent analyzing suspicious transaction reports (STRs) by the Financial Intelligence Unit (FIU)

Law Enforcement

The FIU has made progress in functioning effectively, but there is still room for improvement. The report noted that:

Few corrective measures have been applied by supervisory agencies
The Royal Omani Police and Public Prosecution Office are empowered to conduct money laundering and terrorist financing investigations

Financial Institutions and Designated Non-Financial Businesses and Professions

The evaluation found that:

Both the Central Bank of Oman and Capital Markets Authority have sufficient powers and financial resources to conduct their supervisory activities
However, more needs to be done to utilize their full sanctioning powers

Conclusion

While Oman has made progress in setting up an AML/CFT system, there are still several areas that need improvement. The report recommended that Oman:

Expediately finalize the drafting of its Executive Regulations
Take steps to improve the effectiveness of its legal system and law enforcement framework