Money laundering law in Oman
The
act of money laundering is defined in article 2,[5] as
follows:
Any
person shall be guilty of the crime of money laundering if he intentionally,
carries out any of the following acts:
1)
Exchange, transfer, or move funds; carry out any transactions by the proceeds
of the crime while being consciously aware they are obtained directly or
indirectly from a crime, or any other act that constitutes a participation in a
crime in order to whitewash or conceal the nature and source of these proceeds,
help any accomplice(s) in a crime, hinder the exposure of a person who has
committed the crime from which the proceeds have been obtained, or help a
person escape the legal penalty fixed for his acts.
2)
Whitewash or conceal the nature, source, location, movement and ownership of
the proceeds of the crime and the related or resulting rights while being
consciously aware that they are obtained directly or indirectly from a crime,
or any other act that constitutes a participation in a crime.
3)
Acquiring, owning, receiving, managing, investing, guaranteeing, or using the proceeds of the
crime, holding or keeping the same while being consciously aware that they are
obtained directly or indirectly from a crime, or any other act that constitutes
a participation in a crime.
For the offence,
the punishment prescribed in the law for the perpetrator of the crime is the
imprisonment of years between 3 to 10. In addition to that the criminal has to
pay the fine of 5000, five thousand riyal, or equivalent to the amount of money subjected to
money laundering crime, if higher than the fine.[6]
Moreover, a person also to be considered as commenced the crime of money
laundering, if he is suspicious of, or have any information about the act of
money laundering or terrorism financing; and he deliberately conceals that
information or discloses the same intentionally in such a way that his
disclosure will prejudice the function of any inquiry or intelligence against
that act. For that he will be punished with the imprisonment of not less than 3
years and/or the fine of 3000, three thousand riyal; or either of them.[7]
Exceptionally, both,
the imprisonment as well as the fine go double, (1) if the crime is committed
accompanied by person/persons; or (2) through an organized criminal gang; or (3)
in combination with other criminal activities; or (4) the power or influence of
person is used though his office, profession or society; or (5) the offender is perpetrator or accomplice
in the original crime from which the funds are obtained and subjected as money laundering.[8]
The report
which evaluated the situation of the country on the issue of money laundering
and terrorism financing. It has pointed out the areas which need to be
addressed to make the function of combating the money laundering more effectively.
For example, it was pointed out that, (1) the country should finalize the
forthcoming executive regulation and address the areas untouched in the previous
ER; (2) as compare to the number of investigations made for the illicit
proceeds, in particular for the drug-related crimes, the conviction rate is extremely
law; (3) although the law has adequately addressed the issue of confiscation, seizure
of property laundered and proceeds from the negotiable instruments, by contrast,
only few number of confiscations are made subject to punishment.[9]
It is observed
that Oman has effective regime to tackle money laundering, which functions in
accordance with the FATF recommendations. At the same time there are issues the
country has struggled to induce the global community in their favour. For example,
as concluded by the report, although the country has the fine articulated law to
deal with the offence of money laundering. In comparison, the achievement level
still remains insufficient. Importantly, the effectiveness can be
achieved and more perpetrators can be subjected to justice by enhancing the
implementation level. Simultaneously, it can be uphold that the location of the
country and the low crime rate still remains attraction for global community
for numerous business opportunities.[10]
[1]
Also quoted as Oman or the country
[2]
FATF is the intergovernmental organization which make the policies and
international standard to deal with the acts of money laundering and terrorism
financing. In this regard the FATF has made recommendations which need to be
adhered. Specially, the 40 recommendations are made with respect to dealing
with the money laundering. In addition to that the FATF has made 9 special
recommendations to combat with the act of terrorist financing
[3]
MENAFATF <http://www.menafatf.org/topiclist.asp?ctype=about&id=546>
accessed 2 February 2015
[4] United
Nations Convention Against Transnational Organized Crime And The Protocols
Thereto, 2004 <http://www.unodc.org/documents/middleeastandnorthafrica/organised-crime/UNITED_NATIONS_CONVENTION_AGAINST_TRANSNATIONAL_ORGANIZED_CRIME_AND_THE_PROTOCOLS_THERETO.pdf>
accessed 11 February 2015; Convention Against Illicit Traffic In Narcotic Drugs
And Psychotropic Substances 1998 <http://www.unodc.org/pdf/convention_1988_en.pdf>
accessed 11 February 2015; FATF (n1)
[5] The
Anti Money Laundering and Combating Terrorist Financing Law, the Royal Decree
No. 79/2010
[6] ibid
art 27
[7] ibid
art 28
[8] ibid
art 30
[9] The report was concluded by the team of experts of both, FATF and MENAFATF <http://www.fatf-gafi.org/media/fatf/documents/reports/mer/MER%20Oman%20full.pdf> accessed 11 February 2015
[10] As
per statistics of December 2014, Oman faces medium to low level of threat from
the potential money laundering crime. KnowYourCountry is an ISO 9001 Certified
on-line information of money laundering and sanction information on a country
by country statistics <www.knowyourcountry.com/1ratingtable.html>
accessed 2 February 2015
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