Oman's New AML Law: stricter Enforcement for Financials

Title: Oman’s New AML Compliance Law: Stricter Regulations and Enforcement for Financial Institutions

Introduction

In a bid to strengthen its financial sector and combat money laundering and terrorism financing, the Omani government has issued a new Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) Law (30/2016). This more comprehensive version of the earlier RD 79/2010 sets clear expectations for various sectors.

Targeted Entities

The new law applies to:

Financial institutions
Non-financial businesses and professions
Nonprofit Associations and Entities

Key Provisions

The new law defines Money Laundering and Terrorism Financing offenses and empowers the National Committee for Combating Money Laundering and the Financing of Terrorism and the National Center for Financial Information with extensive powers to enforce these provisions. Regulatory authorities, including the Central Bank of Oman, are tasked with implementing the new provisions and texts.

International Cooperation and Penalties

The new regulations establish clear guidelines for international cooperation and substantial penalties for non-compliance and violations of the AML and CFT Law. The law is backed by the required technical inputs and guidelines from the Financial Action Task Force (FATF).

Central Bank of Oman’s Instruction

As part of the new regulations, the Central Bank of Oman has issued an instruction to all Licensed Financial Institutions under its supervision regarding the implementation of the Combating Money Laundering and Terrorism Financing Law. The instruction reinforces the need for full compliance with the new regulations to ensure a stronger AML and CFT framework for Oman’s financial sector.

Conclusion

Oman’s new AML and CFT law marks a significant step towards strengthening the nation’s financial sector and combating financial crimes. The new regulations set clear expectations for various sectors and provide for comprehensive enforcement mechanisms. This move echoes the international community’s efforts to prevent money laundering and terrorism financing.

Source: Central Bank of Oman Website