Sun, 11 December 2011

http://main.omanobserver.om/node/75053

Stress on training and awareness in all institutions for tackling the financial crime - MUSCAT — BankMuscat and the Financial Intelligence Unit of Royal Oman Police (ROP) hosted a seminar on ‘Anti-money laundering and combating terrorist financing’ at the Bank’s head office.

Key representatives from the Central Bank of Oman, Capital Market Authority, Muscat Securities Market, Muscat Securities Market Brokers Association and Public Prosecution, who all are stakeholders in the area of Anti-Money Laundering and Combating Terrorist Financing, were present at the seminar attended by a large turnout from the financial sector community, which had representation from banks, exchange companies, finance houses, insurance companies and brokerages.

One of the Financial Intelligence Unit’s (FIU) main responsibilities is the receipt and management of all suspicious transaction reports (STR) in the Sultanate. Suspicious Transaction Reporting was a key area of focus at the seminar.

AbdulRazak Ali Issa, Chief Executive, said: “BankMuscat, through the Oman Banking Compliance Forum on behalf of the FIU, is proud to host the seminar, which is an important step in creating real awareness on Anti-Money Laundering and more specifically the responsibilities we all have in reporting suspicious transaction reports to the competent authority.”

AbdulRazak added: “Money laundering is a major risk for all jurisdictions in the world and poses financial, operational, legal and reputational threats to all companies. This has a direct impact on the reputation of Oman and if the Sultanate is to continue to grow by attracting foreign investment, it is important that we as a community excel in the financial crime prevention field.”

The seminar noted that training and awareness is vital for all institutions to contribute to the Sultanate’s sustained efforts in tackling financial crime.

It was noted that platforms such as seminars and conferences help all in building relationships, sharing ideas and seeking clarity from the competent authorities as to what the financial community’s responsibilities are in this area.

Captain Abdullah Said al Alawi from the FIU made a presentation focusing on Suspicious Transaction Reporting.

Whilst the Sultanate is deemed to be strong in many anti-money laundering areas, the level of STR reporting by institutions is deemed low according to Financial Action Task Force (FATF) mutual evaluation performed in 2010. Following the review, this area is now a top priority of focus for the, ROP, FIU, CBO, CMA and MSM, evident from the relevant circulars being issued by each. Captain Abdullah said all suspicious transaction reports in Oman related to proceeds of crime and none were linked to terrorism or terrorist financing.

The responsibility of compliance officers includes tracking suspicious transactions and looking for convincing indicators that the transaction are from proceeds of crime or are connected to money laundering or financing of terrorism, Captain Abdullah said.

Suspicious transaction report relate to existence of doubt that the transaction is related to proceeds of crime or suspected to be linked to terrorism, terrorist crime or terrorist organisation which must be reported to the FIU.

Examples of unusual financial transactions include electronic financial transactions inconsistent with the financial profile of the customer; account receiving regular remittances of large sums from foreign countries known for drug trafficking etc.

Financial institutions are required to report all such cases to the FIU.

To address the issue of effectiveness, Oman should take greater efforts to increase awareness among the private sector on the potential money laundering and terrorist financing threats and supervisory authorities should provide clear guidance on what constitutes suspicious transactions, Captain Abdullah said.