White Collar Crime & Investigations
Anti-Money Laundering and Combatting the Financing of Terrorism (“AML/CFT”) laws and regulations in Sultanate of Oman are designed to help the country combat money laundering and the financing of terrorism. The main AML/CFT legislations are as follows:
Royal Decree No. 30 of 2016 on the Promulgation of the Law of Combating Money Laundering and Terrorism Financing
Oman Sultani Decree No. 72/2004 The Executive Regulations issued under Oman’s Anti-Money Laundering Law Implemented in 2004.
AML laws in Oman applied to a range of entities and individuals, including financial institutions like banks and insurance companies, Designated Non-Financial Businesses and Professions (DNFBPs) such as real estate agents and lawyers, and individuals involved in financial transactions or professions subject to AML regulations.
Both individuals and companies are capable of being punished under the AML/CFT regulation. sanctions can include fines or/and imprisonment, or the loss of licenses. These consequences are designed to prevent individuals and entities from engaging in money laundering and/or the financing of terrorism activities.
Article 88 from the Omani Anti Money Laundering Law states that individuals involved in money laundering crimes may face penalties of imprisonment ranging from three to ten years, along with fines of 5,000 Omani Rials or more. Corporates operating in Oman should be aware that, breaches of the Anti-Money Laundering and Combating the Financing of Terrorism can lead to various other business-related sanctions imposed by Omani authorities, such as revoking a company's license, prohibiting the trading of the company's securities in Omani financial markets, and ultimately, the authority to shut down the company entirely.
Corporates can potentially face criminal penalties and fines, with the exact fine amount varying based on the specific offense committed. According to Article 21 of the Penal Code, legal entities, including companies, can be held criminally responsible for the actions of their representatives, directors, or agents acting on their behalf or in their name. can now potentially face criminal penalties and fines, with the exact fine amount varying based on the specific offense committed.
In Oman, there is not a single comprehensive law governing bribery and corruption; instead, multiple laws and regulations, work together to address these issues.
The primary legislation concerning bribery and corruption is:
Royal Decree No (7) of 2018, Promulgating the Penal Code; and
Royal Decree No. (41) of 2016 Approving accession of Sultanate of Oman to the convention on combating bribery of foreign public officials in international business transactions.
The Omani Penal Code does not provide a precise definition of a bribe. Instead, it characterizes bribery offenses as the act of offering a gift or any form of favour, whether directly or indirectly, with the intention of encouraging or rewarding whoever breaches of the public servant’s duties whether the employee is in the public sector or private sector.
As per Article 207 of the Omani Penal Code, anyone who seeks or accepts for himself or for another any benefit or promise thereof to carry out any duty of his employment or to refrain from doing so shall be punished by imprisonment for a term of not less than 3 years and not more than 5 years, and a fine which should not be less than the amount he was given, or was promised, and he shall be dismissed from office and deprived from the right to assume any public offices.
Oman does not have specific legal provisions for holding a company directly responsible for acts of bribery or corruption committed by its management or staff members. However, companies operating in Oman are expected to ensure compliance with all Omani laws. Therefore, legal entities, private individuals, public employees, and any person who facilitate or abets a bribery offence can be prosecuted for bribery offences.
