Oman Country Summary

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.

Oman faces challenges related to crime and corruption, particularly in areas such as human trafficking, drug trafficking, and financial crimes, with significant exploitation of migrant workers under the Kafala system. Despite these issues, the country has established a legal framework to combat corruption and has seen some success in prosecuting high-profile cases, although the lack of whistleblower protections and transparency in governance remains a concern.

Oman presents a stable and attractive investment climate, bolstered by its strategic location and a commitment to economic diversification away from oil dependency, which currently accounts for over 70% of government revenue. The country is actively enhancing its regulatory framework to encourage foreign direct investment, exemplified by the U.S.-Oman Free Trade Agreement that allows 100% foreign ownership in most sectors, while also promoting initiatives like the Vision 2040 development plan aimed at expanding sectors such as logistics, technology, and tourism. Despite challenges such as bureaucratic hurdles and a recent boycott of U.S. products, Oman remains focused on attracting foreign expertise and investments, particularly in renewable energy and technology, to solidify its position as a regional hub for economic growth.