Financial Crime World

Oman’s Battle Against Money Laundering and Terrorism Financing: A Comprehensive Look at the Regulations Worldwide

Introduction

As Oman continues to take a firm stance against money laundering and terrorism financing, it is essential to understand the regulations that govern these efforts. In this article, we will delve into the various laws, decisions, international standards, and guidelines that are in place to combat these threats.

The Regulatory Framework

At the heart of Oman’s anti-money laundering (AML) and combating terrorism financing (CFT) regime is Law No. 30/2016 on Anti-Money Laundering and Combating Financing Terrorism. This law provides a comprehensive framework for identifying, preventing, and prosecuting money laundering and terrorism financing activities.

Decisions and Instructions

Several decisions have been issued to implement the provisions of this law, including:

  • Decision No. E/81/2021 on Instructions to Insurance and Takaful Companies, Brokers, and Agents
  • Decision No. E/80/2021 on Instructions to Capital Market Institutions

International Standards

Oman is also committed to adhering to international standards set by the Financial Action Task Force (FATF) Recommendations, which provide a framework for countries to combat money laundering and terrorism financing.

National Committee for Combating Terrorism

The National Committee for Combating Terrorism has issued several decisions, including:

  • Decision No. 1/2017 on Procedures for Implementation of the Resolutions of the Security Council under Chapter VII of the United Nations Charter on prevention and suppression of terrorism and financing

Targeted Sanctions

Oman has implemented targeted sanctions against individuals and entities associated with terrorist activities or proliferation of weapons of mass destruction, as outlined in:

  • United Nations Targeted Sanctions against the Financing of Terrorism and the Proliferation of Weapons Mass Destruction

Financial Institutions

The country’s financial institutions are also subject to AML/CFT regulations, including procedures for implementing:

  • Security Council Charter on preventing and suppressing terrorism and impeding the proliferation of weapons of mass destruction and its financing

Enhancing Transparency

In recent years, Oman has taken steps to enhance transparency in corporate ownership, with the introduction of beneficial ownership guidance. The country has also established a local terrorism list and published typologies for various sectors, including:

  • Capital markets
  • Insurance

Registration and Guidelines

Financial institutions are required to register virtual asset service providers and apply AML/CFT requirements, while the National Centre for Financial Information (NCFI) has issued guidelines on indicators and typologies of terrorism financing.

The country’s financial institutions must also conduct business risk assessments in accordance with a guideline published by NCFI.

Conclusion

Overall, Oman’s efforts to combat money laundering and terrorism financing are multifaceted and demonstrate its commitment to upholding international standards and best practices in this area.