Financial Crime World

OMAN: CFT Regulatory Requirements Take Center Stage

In an effort to strengthen its anti-money laundering (AML) and combating the financing of terrorism (CFT) framework, Oman has introduced a range of regulations aimed at curbing illicit activities. These regulatory requirements are in line with international standards set by the Financial Action Task Force (FATF).

The Cornerstone of Oman’s AML/CFT Regime

The Anti-Money Laundering and Combating Financing Terrorism Law No. 30/2016 provides a comprehensive framework for preventing money laundering and financing terrorism.

Key Provisions

  • Provides a legal framework for preventing money laundering and financing terrorism
  • Outlines specific guidelines for insurance companies, takaful operators, brokers, and agents

Central Bank of Oman (CBO) Decisions

The CBO has issued several decisions to instruct insurance companies, takaful operators, brokers, and agents on the implementation of AML/CFT provisions.

Key Decisions

  • Decision No. E/81/2021 outlines specific guidelines for these entities
  • Decision No. E/80/2021 targets capital market institutions, ensuring adherence to AML/CFT requirements outlined in the law

International Standards and Compliance

Oman’s regulatory authorities emphasize the importance of adhering to international standards on combating money laundering and financing terrorism.

Key Measures

  • Implemented various measures to prevent misuse of financial system for terrorist financing activities
  • Established a local terrorism list and implemented targeted financial sanctions in compliance with relevant United Nations Security Council resolutions

Additional Guidelines and Regulations

Oman’s financial institutions are required to adhere to guidelines on:

Key Guidelines

  • Beneficial ownership
  • Capital markets AML/CFT typologies
  • Insurance sector AML/CFT typologies
  • Virtual asset service providers (VASPs)

The National Centre for Financial Information (NCFI) has issued guidelines on indicators and typologies of terrorism financing, while the CBO has published AML guidelines for financial institutions. The regulator has also introduced a business risk assessment guideline to identify and mitigate potential risks associated with money laundering and terrorist financing.

Conclusion

Oman’s regulatory requirements are designed to ensure that its financial system is not misused for illicit activities. By adhering to international standards and implementing robust regulations, Oman aims to maintain its reputation as a responsible and transparent financial hub in the region.