Oman’s Financial Sector: Strengthening Anti-Money Laundering and Combating Terrorism Financing Measures
In an effort to combat money laundering and terrorism financing, Oman has implemented robust measures to ensure the integrity of its financial sector. The Anti-Money Laundering and Combating Terrorism Financing Law (Royal Decree 30/2016) and its Executive Regulations have been put in place to regulate banks, financial institutions, non-financial businesses and professions, and non-profit associations.
Obligations Under AML/CFT Law
The AML/CFT Law requires these entities to undertake a range of obligations, including:
- Identifying customers and beneficial owners
- Conducting due diligence on clients and counterparties
- Monitoring transactions for suspicious activity
- Reporting any suspected money laundering or terrorism financing activities to the National Financial Information Centre
Depositor Protection
The Bank Deposit Insurance Scheme (BDIS) was established in 1995 to provide comprehensive insurance coverage for deposits with licensed banks operating in Oman. The scheme is designed to maintain confidence in the banking system and promote financial stability.
Key Features of BDIS
- Initial capital: OMR 5 million each from the CBO and member banks
- Annual premiums: Collected from member banks at a rate of 0.05%
- Deposit insurance coverage: Up to OMR 20,000 is fully insured
Bank Secrecy Requirements
Article 70 of the Banking Law prohibits licensed banks, their directors, officers, and employees from disclosing client-related information, unless required by law or instructed by the CBO.
Conclusion
Oman’s financial sector is committed to combating money laundering and terrorism financing, while also providing a safe and stable environment for depositors. The AML/CFT Law, Executive Regulations, BDIS, and bank secrecy requirements demonstrate the country’s commitment to maintaining financial integrity and promoting economic growth.