Financial Crime World

Title: Oman’s KYC Process and AML Regulations for Banking: Identity Verification for Domestic and International Clients

Know Your Customer (KYC) Procedures in Oman

Oman’s banking sector follows strict KYC procedures to onboard domestic and international clients. This process ensures the identity verification of new clients and aids in implementing Anti-Money Laundering (AML) regulations.

Documentation requirements for domestic clients:

  • Full name
  • Current address
  • Copy of passport, ID, or driving license

Documentation requirements for international clients:

  • Full name
  • Current address
  • Passport copy
  • Residence permit or labor card

Corporate requirements:

  • Valid commercial registration
  • Specimen signature forms of authorized signatories
  • Copies of authorized signatories’ identification
  • Memorandum and articles of association
  • Other necessary identification documents

Oman’s Anti-Money Laundering (AML) Regulations

Oman’s first AML law, the Law of Money Laundering, was issued in 2002, followed by Executive Regulations in 2004. The Financial Intelligence Unit (FIU) serves as the financial sector regulator, providing practical guidance on AML matters.

KYC for beneficial ownership and risk-based approach:

  • Similar requirements apply for beneficial owners as for any customer.
  • Enhanced due diligence for high-risk customers and suspicious transactions.
  • Additional due diligence and senior management approval for politically exposed persons (PEPs).

Correspondent banking relationships and dealing with shell companies:

  • AML questionnaires and licenses required for correspondent banking relationships.
  • Relationships with shell banks permissible under specific circumstances.

AML Compliance and Penalties

Non-face-to-face transactions and Suspicious Activity Reports (SARs):

  • Enhanced due diligence required for non-face-to-face transactions.
  • SARs made directly to the FIU.
  • Legal requirement to implement AML software and monitoring technology.
  • Reported suspicious transactions may be stopped based on Article 12 of the Law.

External auditors and data protection:

  • No legal requirements for external auditors or organizations to report on banks’ AML systems.
  • The Electronic Transactions Law regulates electronic transactions and offers guidelines on personal data protection.

Exclusions and Scope

Casinos and high-value goods sectors:

  • Excluded from the scope of this article.
  • No legal restrictions on transferring credit reports to the jurisdiction.
  • Prior approval from the Central Bank of Oman required for sharing customer-related information.

FATF mutual evaluation:

  • Latest FATF mutual evaluation conducted in 2016.