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, although risks increase when engaging with the political elite due to nepotism and intertwined business interests. Oman has established robust anti-corruption laws, including the Anti-Corruption Law and minimum sentencing guidelines for public officials, which the government enforces effectively, as evidenced by the prosecution of high-ranking officials. Despite the absence of whistleblower protection legislation, the private sector has begun to implement internal anti-bribery measures, while the government continues to pursue corruption cases actively.

Oman's economy is strategically positioned at the crossroads of major regional markets, making it attractive for foreign investment, particularly in its ports and free zones like Duqm. While the country is currently dependent on oil and gas revenues, it has made significant strides towards economic diversification under its Vision 2040 development plan, aiming to enhance sectors such as logistics, manufacturing, and tourism.

Oman's investment climate is bolstered by its strategic location and the government's commitment to attracting foreign direct investment, particularly through initiatives like 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 removing customs duties and enabling American companies to operate without local sponsorship. However, challenges such as bureaucratic hurdles, local content requirements, and the ongoing boycott of U.S. products may impact foreign investment prospects.