Financial Crime World

Oman’s Anti-Money Laundering and Know Your Customer Best Practices

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A Lower Risk Jurisdiction

According to the 2016 International Narcotics Control Strategy Report (INCSR) from the US Department of State, Oman is classified as a Monitored Jurisdiction with a lower risk of money laundering and terrorism financing. This classification indicates that the country has made significant strides in combating financial crime.

FATF Compliance

The Financial Action Task Force (FATF) conducted its last Mutual Evaluation Report on Oman’s anti-money laundering and counter-terrorism funding regulations in 2011. The report found that Oman was partially or completely compliant with one out of every six Core Recommendations. Since then, the country has continued to improve its coverage and intensity by adopting CFT recommendations and imposing further obligations such as regular reporting of suspicious transactions.

FATF Recommendations

  • 3 out of 40+9 recommendations were fully implemented
  • 24 recommendations were mostly compliant

Central Bank’s AML/CTF Unit

The Central Bank’s Banking Development Department operates a distinct AML/CTF Unit for specialized attention and exchanges on the topic. Licensed institutions are kept under observation and oversight via:

On-Site Inspections and Quarterly Reports

  • Regular reporting of suspicious transactions
  • Special appraisal and investigation visits

Anti-Money Laundering Law and Executive Regulation

The Anti-Money Laundering Law and Executive Regulation mandate stringent requirements and permit broad-ranging actions. The National Committee for Combating Money Laundering oversees the AML/CFT regime in the Sultanate.

Key Requirements

  • Robust customer due diligence procedures
  • Identifying and verifying customer identity
  • Monitoring transactions for suspicious activity

Know Your Customer (KYC) Best Practices

Financial institutions in Oman are expected to implement robust customer due diligence procedures, including:

KYC Requirements

  • Accurate record-keeping
  • Regular reports on customer information and transaction activities

Conclusion

Oman’s anti-money laundering and know your customer best practices demonstrate a commitment to combating financial crime and maintaining financial stability in the region. The country’s continued efforts to improve its AML/CFT regime have earned it a lower risk jurisdiction status, making it an attractive destination for international businesses and investors.