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Oman’s New Penal Code: A Major Crackdown on Corruption and Corporate Crime

Muscat, Oman - In a significant move to combat corruption and corporate crime, Oman has introduced a new Penal Code that aims to tackle the growing menace of bribery and fraud in government contracts.

Strengthening Anti-Corruption Laws

The new code makes it a criminal offense for public officials to obtain commissions or benefits from government contracts, with penalties ranging from imprisonment to fines. The code also introduces corporate liability provisions, holding companies criminally liable for the offenses committed by their representatives, directors, or agents.

Key Provisions of the New Penal Code

• Fraud in Government Contracts: According to Article 221 of the Penal Code, any person who commits fraud in the performance of a contract relating to construction, supply, public works, or any other contract with a government entity shall be sentenced to imprisonment for a term of not less than three years and not more than five years.
• Restitution: The code also makes restitution a legal obligation, requiring the offender to compensate the government entity for any losses caused by the offense.

Significance of the New Penal Code

The new Penal Code has sent a strong signal that Oman is serious about combating corruption and promoting transparency in its business dealings. The code’s anti-corruption provisions are designed to prevent the concentration of funds within organized crime groups away from legitimate actors.

Transnational Organized Crime Provisions

The code also introduces a separate chapter dedicated to transnational organized crime, defining an organized criminal group as a group of at least three participants that engage in criminal activities with the aim of committing transnational crimes. Participation in such activities can result in imprisonment and fines for individuals and companies alike.

Opportunities for International Businesses

For international businesses operating in Oman, the new Penal Code presents a significant opportunity to review and update their compliance policies, conduct training sessions, and review third-party agreements to prevent and detect financial crime or non-compliance related issues.

“The recently upgraded Penal Code provides an excellent opportunity for all businesses with operations in Oman to focus on preventing corporate crime and promoting transparency,” said [Name], a leading expert in compliance and anti-corruption. “Companies must ensure that they have robust compliance policies and procedures in place to prevent corruption and fraud, and that their employees and external representatives are trained to identify and report suspicious activities.”

Outlook

As the amended provisions are still in the early stages of being tried before courts, it remains to be seen how Oman’s court practice will respond to the more stringent regulations. However, one thing is clear: the new Penal Code marks a significant step forward in Oman’s efforts to combat corruption and promote transparency in its business dealings.