FATF Status

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

Compliance with FATF Recommendations

The last Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Oman was undertaken in 2024. According to that Evaluation, Oman was deemed Compliant for 23 and Largely Compliant for 16 of the FATF 40 Recommendations. It was deemed Highly Effective for 0 and Substantially Effective for 4 of the Effectiveness ratings.

Corruption is not a primary concern for U.S. businesses operating in Oman, despite the presence of legislation aimed at combating it, such as the Anti-Corruption Law and the Omani penal code. While Oman has strict laws and has pursued high-profile corruption cases, risks remain, particularly in public procurement and among the political elite, where nepotism is prevalent. The lack of whistleblower protection and the intertwining of business and political interests contribute to the perception of widespread corruption, although petty bribery is not common.

Oman's economy is primarily dependent on oil and gas revenues, although the government is actively working to diversify its income sources under the Vision 2040 development plan. In 2023, high oil prices and fiscal consolidation led to a budget surplus of $2.4 billion, and the country is focusing on developing sectors such as logistics, manufacturing, technology, and tourism to reduce its reliance on hydrocarbons.

Oman offers a favorable investment climate characterized by its strategic location and a commitment to attracting foreign direct investment, particularly through the Foreign Capital Investment Law, which allows 100% foreign ownership in most sectors. The government is actively working to improve the regulatory framework and reduce bureaucratic hurdles, although challenges remain, such as the need for local partnerships in certain tenders and the impact of ongoing social media-driven boycotts against U.S. products. Additionally, Oman is focusing on diversifying its economy under the Vision 2040 development plan, aiming to enhance sectors like logistics, manufacturing, and tourism.