OMAN MOVING TOWARD FIU IMPLEMENTATION

C O N F I D E N T I A L MUSCAT 000267

SIPDIS

SIPDIS

STATE FOR NEA/ARP, EEB/TFS
TREASURY FOR FINCEN AELBASHARI

E.O. 12958: DECL: 04/07/2018
TAGS: EFIN ECON PREL PTER MU
SUBJECT: OMAN MOVING TOWARD FIU IMPLEMENTATION

REF: 07 MUSCAT 1092

Classified By: Ambassador Gary A. Grappo for Reasons 1.4 (b, d)


1. (SBU) On April 5, FINCEN Middle East Director Ahmed
el-Bashari and Econoff met with Lt. Colonel Mohsin Awad
al-Muqaddam, Director of the Financial Crimes Department,
Royal Oman Police (ROP),to review Oman's progress in
formally establishing a financial intelligence unit (FIU).
Muqaddam noted that the government had just issued a decree
creating an independent FIU, to be administratively attached
to the ROP with a direct reporting line to its Inspector
General of Operations. The FIU's budget, however, would be
set directly by the Ministry of National Economy. Muqaddam
envisioned that his unit would grow from 13 to 34 officers,
and that its primary functions would be to analyze and
investigate suspicious transaction reports from the financial
community. He added that the officers would also have the
authority to arrest individuals suspected of money
laundering.


2. (C) Bashari remarked that the formal creation of a FIU was
a positive step toward gaining Egmont Group membership.
Bashari cautioned, however, that the Sultanate would need to
expressly criminalize all acts of money laundering and
terrorist financing before it could qualify for membership.
He outlined additional steps that the FIU would need to take
and offered to co-sponsor, along with Qatar, Oman's
candidacy. Muqaddam replied that his government would
welcome the U.S. and Qatar's support, and that it would
implement its "Law to Combat Terrorist Financing," along with
the law's executive regulations, "very soon." Muqaddam also
pledged to review Egmont requirements with the ROP's
Inspector General to ensure the highest level of support for
admission.


3. (SBU) Bashari and Econoff also discussed Egmont Group
membership, along with broader anti-money laundering
monitoring initiatives, with Central Bank of Oman officials
Malik al-Mahruqi, Banking Development Manager, and Mahran
al-Barwani, Director of the Anti-Money Laundering Department.
Mahruqi prefaced the conversation by affirming the Central
Bank's full support for Egmont Group membership. He
continued that the formal mechanism to create a FIU was
embedded in Oman's proposed terrorism financing law, which he
expected to be promulgated "by the end of the year." In
voicing his support for the FIU, Mahruqi raised the
importance of the organization being appropriately staffed to
carry out its functions.


4. (C) Comment: The government appears to be closer to
qualifying for Egmont Group membership, but the key element
missing is implementation of a terrorism financing law.
Given the speed at which the government promulgates
legislation, however, it may take more time than envisioned
by the ROP before Oman is eligible for Egmont status. End
Comment.
GRAPPO