Mutual Evaluation of the Sultanate of Oman’s Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) Framework
Overview
The Financial Action Task Force (FATF) Mutual Evaluation Report assesses the Sultanate of Oman’s compliance with international standards for Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT). The report evaluates Oman’s strengths and weaknesses in its AML/CFT framework, highlighting areas of progress and gaps that need to be addressed.
Strengths
- Robust Legal Framework: Oman has a comprehensive legal framework that provides for a wide range of confiscation, seizure, and provisional measures to combat money laundering.
- Effective Financial Intelligence Unit (FIU): The FIU has been functioning since 2009 and has made significant progress in investigating suspicious transaction reports (STRs).
- Comprehensive AML/CFT Law: Oman’s AML/CFT Law covers most areas in line with the FATF Recommendations.
Weaknesses
- Insufficient Effectiveness: Despite progress, the effectiveness of Oman’s AML/CFT framework is still at an insufficient level due to a low number of confiscations and amounts confiscated.
- Gaps in Legal Framework: There are significant gaps in the Omani legal framework for freezing terrorist assets, and no procedures are in place to implement most of the requirements under UN resolutions.
- Ineffective Investigations: Investigations of STRs have taken a long time, causing a lack of effectiveness in the system.
Conclusion
The report concludes that Oman has made progress in strengthening its AML/CFT framework but still needs to address some significant weaknesses to enhance the effectiveness of its AML/CFT system. Addressing these weaknesses will require sustained efforts from relevant authorities and stakeholders to ensure compliance with international standards and effective implementation of AML/CFT measures.
Recommendations
- Enhance the effectiveness of the AML/CFT framework by increasing confiscations and amounts confiscated.
- Close gaps in the legal framework for freezing terrorist assets and implement UN resolutions requirements.
- Improve investigation timelines for STRs to enhance the effectiveness of the system.