Financial Crime World

Oman’s Battle Against Money Laundering: What You Need to Know

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The Sultanate of Oman has been committed to combating money laundering and the financing of terrorism for a long time. It has made significant progress in international initiatives, taking a proactive approach to updating its legal, institutional, and procedural requirements.

International Cooperation

Oman is a founding member of the Middle East and North Africa Financial Action Task Force (MENA FATF), which makes it well-equipped to tackle money laundering. Additionally, Oman is a party to several key UN conventions, including:

  • 1988 Convention against Illicit Traffic in Narcotic Drugs and Psychotropic Substances
  • 2000 Convention against Transnational Organized Crime

Strengthening the Financial System

The Central Bank of Oman has issued circulars emphasizing the importance of combating money laundering. These circulars require:

  • Customer identification and record-keeping
  • Special attention to large, unusual, or suspect transactions

Oman has also implemented policies, programs, training, and audit and compliance functions to ensure effective monitoring.

Informal Funds Transfer System

The absence of an informal funds transfer system in Oman makes it easier for the authorities to track and monitor financial transactions. Bilateral and multilateral treaties have been signed to facilitate cooperation and information-sharing between countries.

FATF Assessment and Recommendations

In 2003, Oman underwent a FATF assessment, which confirmed its acceptable standards and provided recommendations for improvement. The country has since worked diligently to address these recommendations. Follow-up actions on relevant UN resolutions are also regularly made.

AML/CFT Unit and Monitoring

A dedicated AML/CFT Unit operates within the Banking Development Department of the Central Bank, focusing on combating money laundering and financing of terrorism. Licensed institutions are monitored through:

  • Periodical reports
  • On-site examinations
  • Annual examinations covering all licensees
  • Special appraisal/investigation visits undertaken as needed

The Anti-Money Laundering Law (Royal Decree 34 of 2002) and Executive Regulation (Royal Decree 72 of 2004), along with the Penal Code and other laws, provide a comprehensive framework for combating money laundering. The National Committee for Combating Money Laundering, comprising high-level representatives from concerned Ministries, Regulators, and Law Enforcement Authorities, plays a key role in spearheading Oman’s AML/CFT regime.

Conclusion

With its robust legal framework and proactive approach, Oman is well-equipped to combat money laundering and financing of terrorism.