Keeping tabs on suspicious financial transactions

n the past few years, the Financial Action Task Force (FATF) issued 40 international recommendations on combating money laundering and financing of terrorism. This has prompted the local authorities in each member state to show more concern towards any suspicious financial reports for investigation.

Such reports, received from the local and international institutions, are on the rise. For example, at the local level in Oman, the number of reports on suspicious financial transactions received by the centre during 2016 reached 623, according to statistics released by the National Center for Financial Information at Royal Oman Police.

In 2015, it recorded 286 reports, an increase of 118 per cent.

This is considered a positive indicator of awareness, experience, training and information exchange, both internally and externally.

Despite the large number of reports and concern of the authorities concerned who have scrutinised such reports to protect people from falling prey to any kind of slander, hoax or false information, only 29 suspicious transactions of those reports were referred to the respective authorities. This is in addition to the referral of 137 pieces of information to the General Secretariat of Taxes on tax evasion.

This information was disclosed at a seminar recently at the Oman Chamber of Commerce and Industry (OCCI) titled, ‘The Role of the National Center for Financial Information regarding Financial Sectors, Banks and Insurance’, attended by officials of the National Centre for Finance Information (NCFI), the Royal Oman Police (ROP), the Public Prosecution Office and members of the National Committee for Combating Money laundering and Terrorism Financing.

NCFI plays a significant role in detecting these crimes. It is in contact with similar institutions abroad to follow up on suspicious financial cases.

It also receives, analyses and refers suspicious transaction reports related to money laundering and terrorism financing along with the means and methods used by offenders, and how to detect and prosecute these criminal activities that have become a real threat to countries and their security and interests.

These suspicious financial activities pose a major challenge to local economies. Smuggled and dirty money deny businesses an equal opportunity for natural, flexible and gradual growth, driving away local and foreign investments due to manipulation by suspicious institutions.

In this respect, OCCI officials confirm that such seminars are especially important for the private sector in general, and the financial and banking sector in particular, with positive effects on the protection of companies and institutions against suspicious practices that are harmful and debilitating for the comprehensive development country.

The current role of NCFI is limited to receiving reports and information from financial institutions, businesses, non-financial professions, non-profit associations and agencies and other competent authorities of suspicious financial transactions, the proceeds of those crimes and their relation to or association with terrorism.

The role of NCFI also includes follow-up and implementation of physical transport control requirements across the border, whether for local or foreign currencies, in addition to detecting crimes originating from arms dealing, human trafficking, smuggling immigrants, maritime piracy, bribery, corruption and others.

It is noteworthy that the value of remittances by workers from Oman to the outside world in 2016 reached almost RO 3.952 billion ($10.2 billion). taking place in the