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Central Bank of Oman Issues Guidelines for Secure Banking Practices

Muscat, Oman - In a bid to ensure the safety and security of banking transactions in Oman, the Central Bank of Oman has issued a circular outlining guidelines for merchants acquiring business, banks, and customers to follow.

Guidelines for Banks and Merchants

The circular outlines several key guidelines for banks and merchants to ensure secure banking practices. These include:

• Merchant acquiring businesses must exercise great care when entering into agreements with banks, ensuring that suitable indemnities are built into the contracts.
• Banks must conduct regular reviews of their merchant acquiring processes and POS operations, setting limits based on merchants’ profiles and turnover.
• Banks must provide manual key entry facilities to merchants only after a proper assessment and adequate safeguards are in place.

Importance of Security Checks

The guidelines also stress the importance of security checks, including:

• Providing automated teller machines (ATMs) and cash dispensing machines (CDMs) with the ability to detect and reject counterfeit currencies.
• Conducting regular security checks of physical infrastructure, including offices and data centers.
• Ensuring that all physical assets and data are properly authorized before being taken out of the office premises.

Non-Face-to-Face Transactions

The circular also highlights the importance of non-face-to-face transactions, particularly e-commerce transactions. These should be authenticated using dynamic authentication mechanisms, such as:

• SMS alerts, which can be used to mitigate risks provided they are accompanied by other security measures.
• Other forms of dynamic authentication, such as one-time passwords or biometric verification.

Education and Awareness

The guidelines also stress the need for banks to constantly educate customers on good practices when using ATMs and POS machines, especially when traveling abroad. This includes:

• Warning customers against requests received for assistance in diverting blocked funds or providing account information.
• Educating customers on how to use ATMs and POS machines securely, including how to verify the authenticity of transactions.

Conclusion

In conclusion, the Central Bank of Oman’s circular aims to ensure that banking transactions in the country are secure, efficient, and reliable. By following these guidelines, banks and merchants can protect themselves and their customers from fraudulent activities and maintain the integrity of the financial system.