FATF Status

Oman is not currently identified by FATF as having substantial money laundering and terrorist financing (ML/TF) risks or having strategic AML/CFT deficiencies

Compliance with FATF Recommendations

It should be noted that the new style FATF Mutual Evaluation has not yet been undertaken.

The last Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Oman was undertaken by the Financial Action Task Force (FATF) in 2011. According to that Evaluation, Oman was deemed Compliant for 3 and Largely Compliant for 24 of the FATF 40 + 9 Recommendations. It was Partially Compliant or Non-Compliant for 1 out of 6 of the Core Recommendations.

In 2017, it was recognised that Oman had made significant progress in addressing deficiencies identified in its original Mutual Evaluation report and, therefore, it was decided that the country should be removed from the regular follow-up process.

Corruption is not a primary concern for U.S. businesses operating in Oman, despite the presence of robust anti-corruption laws and enforcement mechanisms. The Omani government has enacted legislation to combat corruption, particularly in the public sector, and has pursued high-profile cases against officials involved in corrupt practices. While nepotism and conflicts of interest exist among the political elite, the overall environment is characterized by a low incidence of petty corruption, and the government actively prosecutes corruption-related offenses.

Oman's economy is heavily reliant on oil and gas revenues, although the government is actively working to diversify its income sources under the Vision 2040 development plan, which includes sectors such as logistics, manufacturing, and tourism. In 2023, high oil prices and fiscal consolidation led to a budget surplus of $2.4 billion, while the U.S. remains a significant foreign investor, with $10 billion in direct investments as of Q3 2023.

Oman's investment climate is bolstered by its strategic location and the government's commitment to attracting foreign direct investment, particularly through the Foreign Capital Investment Law, which allows 100% foreign ownership in most sectors. The U.S.-Oman Free Trade Agreement further enhances this environment by eliminating customs duties and enabling American companies to operate without local sponsorship. However, challenges such as bureaucratic hurdles, labor policies favoring local companies, and the ongoing boycott of U.S. products may impact foreign investment prospects.