Financial Crime World

Definition of Money Laundering in Oman: New Law Sets Framework for Combating Criminal Activities

The Sultanate of Oman has introduced a revised law aimed at combating money laundering and terrorism financing, outlining the powers and responsibilities of various authorities in enforcing the provisions. The new law replaces its predecessor from 2010, providing a clearer definition of money laundering and setting obligations for financial institutions, non-financial businesses, professions, non-profit associations, and entities.

Key Provisions

  • The legislation establishes the National Committee for Combating Money Laundering and the Financing of Terrorism (NCCLTF) as well as the National Center for Financial Information (NCFI), outlining their roles and responsibilities.
  • Regulatory authorities, including the Central Bank of Oman, are tasked with implementing the law’s provisions and texts.
  • The law defines the scope of international cooperation and possible penalties for non-compliance or violations.

International Cooperation

The legislation is supported by technical inputs and guidelines from the Financial Action Task Force (FATF), an inter-governmental organization that sets standards for combating money laundering, terrorist financing, and other related threats.

Implementation Requirements

A separate instruction has been issued to all licensed financial institutions under the supervision of the Central Bank of Oman, outlining the requirements for implementing the Combating Money Laundering and Terrorism Financing Law. This includes:

  • Identifying customers and verifying their identity
  • Conducting regular customer due diligence
  • Reporting suspicious transactions
  • Implementing adequate controls and risk management procedures

Conclusion

The new law aims to strengthen Oman’s efforts in combating money laundering and terrorism financing, ensuring a more robust framework for financial institutions and other entities. The legislation is designed to improve cooperation between authorities, enhance the effectiveness of anti-money laundering measures, and prevent the misuse of the financial system.