Financial Crime World

Financial Inclusion and Combating Financial Crime in Oman: Evaluation Report Released

A recent evaluation report has shed light on Oman’s efforts to combat financial crime and promote financial inclusion. The report, released by the Middle East and Northern Africa Financial Action Task Force (MENAFATF) and the Financial Action Task Force (FATF), assesses the effectiveness of Oman’s anti-money laundering (AML) and combating the financing of terrorism (CFT) measures.

Progress Made in Combating Financial Crime

According to the report, Oman has made significant progress in setting up an AML/CFT system that is largely in line with international standards. The country’s new AML/CFT law, enacted in July 2010, was found to be robust by the assessment team. However, the report also highlighted some gaps in the legal framework for preventive measures, particularly regarding customer due diligence.

Criminalization of Money Laundering and Terrorist Financing

Oman has criminalized money laundering and terrorist financing to a large extent, but there are still areas that require improvement. The country’s legislation does not cover all aspects of money laundering and terrorist financing, and there have been few convictions for these crimes.

Evaluation of Law Enforcement Efforts

The report evaluated Oman’s law enforcement efforts, finding that the Financial Intelligence Unit (FIU) has made progress in functioning effectively, but still needs to improve its capacity and experience in analyzing suspicious transaction reports. The Royal Omani Police and Public Prosecution Office are empowered to conduct money laundering and terrorist financing investigations, but the report noted that there is a need for more effective implementation.

Financial Institutions and Designated Non-Financial Businesses and Professions

Financial institutions (FIs) and designated non-financial businesses and professions (DNFBPs) were also evaluated. The report found that both have sufficient powers and financial resources to conduct their supervisory activities. However, the report noted that there is a lack of corrective measures applied by regulatory bodies, with only one administrative penalty imposed for an AML/CFT violation.

Conclusion and Recommendations

The report concludes that while Oman has made significant progress in combating financial crime, there are still areas that require improvement. The country should expeditiously finalize the drafting of its Executive Regulation to address remaining shortcomings and improve its legal framework for preventive measures. Additionally, there is a need for more effective implementation of AML/CFT requirements by regulatory bodies and law enforcement agencies.

Recommendations

  • Expedite the drafting of the Executive Regulation to address remaining shortcomings in Oman’s legal framework for preventive measures.
  • Improve the capacity and experience of the Financial Intelligence Unit (FIU) in analyzing suspicious transaction reports.
  • Enhance the effectiveness of law enforcement efforts, including the Royal Omani Police and Public Prosecution Office.
  • Increase corrective measures applied by regulatory bodies to ensure compliance with AML/CFT requirements.

The full report will be published shortly, providing further details on Oman’s efforts to promote financial inclusion and combat financial crime.