Oman's measures to combat money laundering and terrorist financing

Publication details

Language

English

Country

Oman

Mutual Evaluation Report of Oman - 2024

Filename
Comms MER Oman 2024.pdf
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4 MB
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application/pdf
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Paris, 19 December 2024 - Oman has significantly improved its legal, operational and supervisory framework on anti-money laundering and countering terrorist financing (AML/CFT) in recent years through robust technical compliance with the FATF Recommendations.

Oman is achieving positive results in the use of financial intelligence, international cooperation, combating terrorist financing and implementing financial sanctions for proliferation financing. However, in some areas, more time and effort are needed for measures and reforms introduced to impact the effectiveness of Oman's AML/CFT system.

The joint FATF/MENAFATF mutual evaluation of Oman assessed the effectiveness of Oman’s measures to combat money laundering, terrorist financing and proliferation financing, and their level of compliance with the FATF Recommendations, at the time of an on-site visit between January and February 2024.

Oman is a high-income country and is exposed to money laundering and terrorist financing risks associated with cross-border flows and activity due to its proximity to countries destabilised by conflict or terrorism. The country is also particularly vulnerable as a result of a predominantly cash-based economy.

Oman has a good understanding of its terrorist financing risks, including the geographic risks it faces and demonstrated strengths in combating terrorist financing. Oman has an adequate legal framework to implement without delay targeted financial sanctions with only some areas for improvement.

Oman should deepen its understanding of money laundering risk and strengthen capabilities of law enforcement agencies to detect, investigate and prosecute money laundering. Oman achieved 50 money laundering convictions during the review period. While Oman demonstrated the ability to pursue complex cases, most cases prosecuted and convicted relate to simpler cases of self-laundering. Oman should ensure that money laundering investigations are better targeted on high-risk areas.

Oman has a strong, competent and well-resourced Financial Intelligence Unit that has sophisticated artificial intelligence systems.

Although Oman has an effective asset recovery regime in place and has generated good results, greater efforts are needed to confiscate money at borders in line with risks, particularly considering cross-border threats that Oman faces.

Oman takes a collaborative approach towards international cooperation. Authorities provide and seek timely and effective assistance across a range of assistance and extradition requests, including simple and complex cases.

Oman has put in place a well-resourced AML/CFT supervision framework. While the supervision is risk-based to some extent, some challenges remain on the ability of all supervisors to understand ML/TF risks.

While Omani authorities have access to most Beneficial Ownership information, the country should finalise its centralised Beneficial Ownership registry to further improve the availability of information to all legal persons.

Oman places excessive measures on Non-Profit Organisations (NPOs), which are not consistent with Recommendation 8 of the FATF’s Standards. This may discourage and disrupt legitimate NPO activities, so Oman should remove the requirement that NPOs serve as reporting entities.

Following the assessment, Oman is placed in "enhanced follow-up" and will report back to MENAFATF in one year.

 

Ratings

Effectiveness

Ratings that reflect the extent to which a country's measures are effective. The assessment is conducted on the basis of 11 immediate outcomes, which represent key goals that an effective AML/CFT system should achieve.

Ratings that reflect the extent to which a country's measures are effective. The assessment is conducted on the basis of 11 immediate outcomes, which represent key goals that an effective AML/CFT system should achieve.

MER Oman 2024

IO1
ME
IO2
SE
IO3
ME
IO4
ME
IO5
ME
IO6
SE
IO7
ME
IO8
ME
IO9
SE
IO10
ME
IO11
SE

HE = high level of effectiveness   |   SE = substantial level of effectiveness    |   ME = moderate level of effectiveness   |   LE = low level of effectiveness

Technical Compliance

Ratings which reflect the extent to which a country has implemented the technical requirements of the FATF Recommendations.

MER Oman 2024

R.1 - Assessing risk & applying risk-based approach
LC
R.2 - National cooperation and coordination
LC
R.3 - Money laundering offence
LC
R.4 - Confiscation and provisional measures
C
R.5 - Terrorist financing offence
C
R.6 - Targeted financial sanctions related to terrorism & terrorist financing
LC
R.7 - Targeted financial sanctions related to proliferation
LC
R.8 - Non-profit organisations
PC
R.9 - Financial institution secrecy laws
C
R.10 - Customer due diligence
C
R.11 - Record keeping
C
R.12 - Politically exposed persons
C
R.13 - Correspondent banking
C
R.14 - Money or value transfer services
C
R.15 - New technologies
LC
R.16 - Wire transfers
C
R.17 - Reliance on third parties
C
R.18 - Internal controls and foreign branches and subsidiaries
LC
R.19 - Higher-risk countries
C
R.20 - Reporting of suspicious transactions
LC
R.21 - Tipping-off and confidentiality
C
R.22 - DNFBPs: Customer due diligence
C
R.23 - DNFBPs: Other measures
C
R.24 - Transparency and beneficial ownership of legal persons
LC
R.25 - Transparency and beneficial ownership of legal arrangements
LC
R.26 - Regulation and supervision of financial institutions
LC
R.27 - Powers of supervisors
C
R.28 - Regulation and supervision of DNFBPs
C
R.29 - Financial intelligence units
C
R.30 - Responsibilities of law enforcement and investigative authorities
C
R.31 - Powers of law enforcement and investigative authorities
LC
R.32 - Cash couriers
C
R.33 - Statistics
C
R.34 - Guidance and feedback
C
R.35- Sanctions
C
R.36 - International instruments
LC
R.37 - Mutual legal assistance
LC
R.38 - Mutual legal assistance: freezing and confiscation
C
R.39 - Extradition
LC
R.40 - Other forms of international cooperation
LC

C = compliant   |   LC = largely compliant     |   PC = partially compliant   |   NC = non-compliant

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