Financial Crime World

Oman Tightens Anti-Money Laundering Laws to Combat Financial Crimes

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The Sultanate of Oman has strengthened its anti-money laundering (AML) regulations to combat financial crimes and terrorism financing. The country’s AML laws aim to prevent the misuse of its financial system by criminal organizations and terrorist networks.

Regulatory Framework

Oman’s AML regulatory framework is built around several key pieces of legislation, including:

  • Anti-Money Laundering and Combating Financing Terrorism Law No. 30/2016, which outlines the general principles and objectives of AML in Oman.
  • Decision No. E/81/2021 on Instructions to Insurance and Takaful Companies, Brokers and Agents on the Implementation of the Provisions of the Law on Combating Money Laundering and Terrorism Financing.

International Standards

Oman has implemented international standards on combating money laundering and financing of terrorism (FATF Recommendations) to ensure that its AML regulations are in line with global best practices. The country’s National Committee for Combating Terrorism has issued:

  • Decision No. 1/2017 on the Procedures for Implementation of the Resolutions of the Security Council under Chapter VII of the United Nations Charter on prevention and suppression of terrorism and financing.

Local Terrorism List

The government has established a local terrorism list, which identifies individuals and entities involved in terrorist activities. Oman has also implemented targeted financial sanctions in compliance with relevant UN Security Council resolutions on the prevention and suppression of terrorism and its financing.

AML Measures

To further enhance AML measures, the country’s financial institutions are required to:

  • Conduct business risk assessments
  • Implement robust customer due diligence procedures

The Central Bank of Oman has also issued guidelines for financial institutions on AML/CFT requirements, including the implementation of targeted financial sanctions.

National Centre for Financial Information (NCFI)

Oman has established a National Centre for Financial Information (NCFI), which provides guidance on:

  • Indicators and typologies of terrorism financing
  • Business risk assessment guidelines for financial institutions to identify potential money laundering and terrorist financing risks in their operations

Conclusion

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Overall, Oman’s AML regulations demonstrate its commitment to preventing the misuse of its financial system by criminal organizations and terrorist networks, while also complying with international standards and best practices.