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Oman’s Banking Sector Adheres to Strict Anti-Money Laundering Regulations

The National Committee for Anti-Money Laundering and Combating the Financing of Terrorism (NAC) is responsible for overseeing the implementation of anti-money laundering (AML) and combating the financing of terrorism (CFT) regulations in Oman’s banking sector.

Risk Assessment and Due Diligence

Financial institutions operating in Oman are required to conduct a thorough risk assessment of their customers, transactions, and business relationships. This includes:

  • Identifying potential money laundering and terrorist financing risks
  • Assessing the likelihood of these risks materializing

To mitigate these risks, financial institutions must implement due diligence measures, including:

  • Verifying the identity of customers and beneficial owners
  • Monitoring customer transactions
  • Reporting suspicious activities to the authorities

Enhanced Due Diligence for High-Risk Customers

Financial institutions operating in Oman are required to apply enhanced due diligence measures for high-risk customers, including:

  • Obtaining additional information
  • Updating data more frequently
  • Getting senior management approval

Compliance and Reporting Requirements

Financial institutions must establish internal policies, controls, and procedures to ensure compliance with AML/CFT regulations. These policies should address:

  • Risk evaluation
  • Identification and verification of customers and beneficial owners
  • Record maintenance of customer information and transactions
  • Suspicious transaction reporting

A compliance officer must be appointed at the senior management level, responsible for ensuring adherence to AML/CFT regulations. The officer is required to report regularly to the board of directors on AML/CFT activities, measures taken, and the overall effectiveness of the program.

Independent Audit Function

An independent audit function should assess the institution’s compliance with AML/CFT policies and the Law. This ensures that financial institutions are adhering to necessary regulations and guidelines.

Ongoing Employee Training

Regular training is essential for ensuring employees are updated on new developments and obligations related to AML/CFT.

Hiring and Conduct Policies

Financial institutions should set a code of conduct and hiring criteria ensuring:

  • Competence
  • Integrity
  • The absence of past offenses involving dishonest acts

Immediate Reporting of Suspected Illicit Funds

Entities associated with financial institutions must notify the Center immediately if they suspect illicit fund activities. All related documentation should be provided.

Responding to Requests from the Center

Financial institutions must provide all relevant data within the specified timeframe upon request by the Center.

Conclusion

The Oman banking sector’s commitment to adhering to AML/CFT regulations is crucial in preventing money laundering and terrorist financing, maintaining financial stability, and ensuring a safe and secure environment for customers.