Oman’s 2024 FATF Report Highlights Progress in AML/CFT Framework

On December 19, 2024, the Financial Action Task Force (FATF) published its Mutual Evaluation Report (MER) for the year 2024 and revealed that the Sultanate of Oman is strengthening its legal, supervisory & operational framework on AML/CFT.

This Mutual Evaluation Report (MER) highlights all the efforts made by Oman, including complying with global standards to achieve economic stability and improving financial integrity to combat AML/CFT.

During October 23-25, 2024, in Paris, MER was discussed & approved at FATF general meeting. Further, from November 16 to 21, 2024, it was also discussed by the North Africa Financial Action Task Force & Middle East (MENAFATF).

Both the ‘FATF General Meeting and the MENAFATF’ praised the Sultanate of Oman’s AML system for its high level of compliance with international standards and recognized it as the best within the Middle East and North Africa jurisdiction.

During the onsite visit of MENAFATF and FATF, in January & February 2024, they also discussed the effectiveness of the country’s measures to combat terrorism financing, money laundering & proliferation financing. The evaluation also analyzed Oman’s compliance with FATF recommendations.

They also analyzed the areas that need more effort and time for reforms & measures that will be essential to impact the effectiveness of Oman’s AML/CFT system.

Oman achieved 50 money laundering convictions during the review period because most cases involved are simple money laundering which indicates a need to target investigations towards high-risk areas better.

Oman possesses an effective asset recovery framework that is generating positive outcomes. However, the Sultanate should put more effort into seizing illegal funds at its borders and align these efforts with identified risks. These are the crucial cross-border threats that Oman controls.

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Not only this, but Oman should also improve its transparency measures by finalizing its centralized Beneficial Ownership registry. This will improve accessibility for all legal persons while giving authorities access to the most beneficial ownership information.

Furthermore, this assessment raised concerns about excessive measures imposed by Oman on Non-Profit organizations (NPOs).  These restrictions are inconsistent with Recommendation 8 of the FATF standards, which disrupt & discourage NPO activities. Therefore, Oman should remove this requirement that NPOs serve as reporting entities.

According to a FATF Press release,  Oman, a high-income country, faces money laundering & terrorist financing risks due to its proximity to conflict-ridden regions & a largely cash-based economy.

Following the investigation, Oman is officially placed on “enhanced follow-up” and will report back to MENAFATF in one year.