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 exhibits a complex landscape regarding crime and corruption, with significant challenges such as human trafficking and drug trafficking, particularly involving foreign labor and synthetic drugs. While the government has established anti-corruption laws and actively pursues high-profile cases, issues like the Kafala system and a lack of whistleblower protections hinder effective enforcement and transparency, although the judicial system is generally perceived as impartial.

Oman presents a compelling investment climate, characterized by its strategic location at the crossroads of major markets and a stable political environment that fosters foreign investment. The government is actively promoting development projects, particularly in ports and free zones like Duqm, which is envisioned as a significant logistics hub. Despite recent social media-driven boycotts against U.S. products due to geopolitical tensions, Oman continues to seek foreign direct investment, particularly from the U.S., leveraging its Free Trade Agreement and regulatory reforms aimed at enhancing business facilitation and ownership rights for foreign investors.