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Oman Takes Strong Stance on Anti-Money Laundering Regulations
The National Committee for Anti-Money Laundering and Combating the Financing of Terrorism (NAC) has been at the forefront of ensuring that financial institutions in Oman comply with strict anti-money laundering regulations.
Compliance is Key
Under the guidance of the NAC, financial institutions in Oman are required to implement robust measures to prevent money laundering and terrorist financing. The regulations, which came into effect recently, aim to reduce the risk of financial institutions being used for illegal activities. Financial institutions are expected to develop and implement anti-money laundering (AML) and combating the financing of terrorism (CFT) policies, controls, and procedures that are aligned with the law and relevant guidelines issued by the Central Bank of Oman.
Key Requirements
- Appoint a senior management-level compliance officer responsible for AML/CFT obligations
- Conduct regular risk assessments to identify potential money laundering and terrorist financing risks
- Apply enhanced due diligence measures for cases with higher money laundering or terrorism financing risks
Risk Assessment
Financial institutions in Oman are required to conduct regular risk assessments to identify potential money laundering and terrorist financing risks. The assessment should take into account various factors, including:
- Customer risk factors
- Country risk factors
- Product or service risk factors
Enhanced Due Diligence
For cases with higher money laundering or terrorism financing risks, financial institutions in Oman are required to apply enhanced due diligence measures. This includes:
- Obtaining additional information
- Updating data more frequently
- Getting senior management’s approval
- Other listed measures
Ongoing Training
Financial institutions in Oman are also required to provide ongoing training for their employees on AML/CFT requirements and new developments. The training is essential to ensure that employees are equipped with the necessary skills and knowledge to identify and report suspicious transactions.
Immediate Reporting of Suspected Illicit Funds
Entities associated with financial institutions in Oman are required to notify the Center immediately if they suspect illicit fund activities. All related documentation should be provided.
Positive Response from the Banking Sector
The regulations have been welcomed by the banking sector, which sees them as a crucial step towards maintaining the integrity of the financial system and preventing illegal activities.
Support from the NAC
The NAC has committed to providing guidance and support to financial institutions in Oman to ensure their compliance with the regulations.
References
- Capital Market Authority of Oman
- Central Bank of Oman