OMAN: Financial Institution Compliance Requirements Tightened to Combat Money Laundering and Terrorism Financing
Strengthening the Fight Against Money Laundering and Terrorism Financing
Oman has introduced a range of laws and regulations aimed at ensuring the compliance of financial institutions with international standards on combating money laundering and terrorism financing. These measures are designed to prevent the misuse of the country’s financial system for illicit activities and ensure the integrity of its financial sector.
Anti-Money Laundering and Combating Financing Terrorism Law No. 30/2016
At the heart of these efforts is the Anti-Money Laundering and Combating Financing Terrorism Law No. 30/2016, which requires all financial institutions operating in Oman to implement robust measures to detect and prevent money laundering and terrorism financing.
Central Bank of Oman Decisions
The law has been supplemented by a series of decisions issued by the Central Bank of Oman, including:
- 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
Financial institutions in Oman must also comply with international standards set by the Financial Action Task Force (FATF), which has issued a range of recommendations aimed at combating money laundering and terrorism financing.
Targeted Financial Sanctions
The country’s financial sector is also required to implement targeted financial sanctions against individuals and entities designated as terrorist financiers or proliferators of weapons of mass destruction.
National Committee for Combating Terrorism
Oman has established a National Committee for Combating Terrorism, which has issued guidelines on the procedures for implementing resolutions of the United Nations Security Council under Chapter VII of the UN Charter. The committee’s decisions are aimed at preventing and suppressing terrorism and impeding the proliferation of weapons of mass destruction and its financing.
Financial Institution Compliance Requirements
Financial institutions operating in Oman must:
- Register with the authorities
- Provide information on their beneficial ownership
- Submit regular reports on their compliance with AML/CTF requirements
Failure to comply with these regulations can result in severe penalties, including fines and even revocation of licenses.
Business Risk Assessment Guidelines
To further strengthen its anti-money laundering regime, Oman has also issued guidelines on business risk assessment for financial institutions. These guidelines are designed to help them identify potential risks and take steps to mitigate them.
National Centre for Financial Information (NCFI)
The country’s authorities have established a National Centre for Financial Information (NCFI), which is responsible for monitoring and analyzing information related to money laundering and terrorism financing.
Summary
In summary, Oman has introduced a range of laws and regulations aimed at ensuring the compliance of financial institutions with international standards on combating money laundering and terrorism financing. These measures are designed to prevent the misuse of the country’s financial system for illicit activities and ensure the integrity of its financial sector.