Oman: Banks Have to Maintain Bounced Cheque Defaulters List

Oman Daily Observer, 1 October 2023: Oman’s Central Bank has approved a Decision requiring banks to maintain a list of bounced cheque defaulters.

Oman Resolution No. BM/9/57/2023 regulates the direct debit system and bounced cheques.

Among other things, licensed banks must provide all details related to bounced cheques, especially details relating to account holders who have two or more bounced cheques in a month, four or more bounced cheques over six months, or six bounced cheques within one year, regardless of whether those cheques were returned through one or more banks.

Banks also have to provide the names and IDs of the owners of the bounced cheque, the numbers and dates of its issuing and return, the amounts, beneficiary names and the reasons for it bouncing.

In addition, they must provide any other information specified by the Central Bank for the purposes of analysing information and setting policies.

Licensed banks will be responsible for the accuracy and updating of the information related to the bounced cheque.

The Central Bank or the hosting entity will prepare a unified warning list of the names of the account holders based on the information received from the licensed banks.

Licensed banks, financial institutions, credit bureaus, their participating members, and others, as determined by the Central Bank, may also review the warning list to benefit from it for the purpose of assessing credit status and financial solvency.

Licensed banks or any authorised person may not use the system to benefit from information related to the bounced cheques for the purposes for which it was requested.

Licensed banks must also exercise caution when dealing with account holders whose names appear on the unified warning list and must withdraw cheque books from them. They must also not open current accounts for them and refrain from providing them with direct debit services for one year from the date of returning the returned instrument, without prejudice, apart from imposing any fines or actions determined by the Central Bank.

Licensed banks may remove the name from the list if account holders of those returned cheques have settled their obligations towards the beneficiary too.

Licensed banks should obtain a document proving settlement and maintain evidential documents as well.

The Central Bank may fine violators 20,000 Rials.

Also reported in Shabiba on 1 October 2023. For the full story, read here.

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Oman: Omap Platform Launched

Oman Daily Observer, 18 September 2023: Oman’s Public Authority for Special Economic Zones and Free Zones has announced it has launched an Omap platform. It aims to provide a digital portal to allow comprehensive geographical data, masterplans for special economic zones, free zones and industrial cities overseen by the Authority to be accessed.

It will provide detailed information and services via interactive digital maps and tools. It has been launched as the first step in the Authority’s online land allocation service.

The platform will simplify and expedite procedures, save time and effort, ensure equitable opportunities for all investors and prevent plans overlapping. It provides access to precise spatial information through detailed interactive maps for all zones, even pinpointing land available for investment and associated economic activities.

Investors can examine the land’s elevation, regardless of whether or not they are in Oman. They can also understand the land’s surface area and decide whether the power line is near enough or the required water capacity is available. They can also decide whether that particular plot is suitable for their specific industry, hotel, or commercial activity. It will enable them to understand whether roads are planned for the future or if there is a fibre optics or a telephone network as well.

In addition, investors will be able to remotely reserve the land, whether inside or outside Oman for 20 days and finalise the land acquisition process.

Investors can also interact and learn more about the specific plot available within all zones. Its features also include location searches for investment properties and comprehensive information on nearby landmarks and facilities like hospitals, restaurants, schools, stores and hotels. Users can also obtain land details by type, usufruct rates, location coordinates, size, and nearby utilities such as electricity, telecommunications, water, and transportation networks.

Users can also measure distances between different locations and their proximity to transportation networks relevant to shipping goods. Users will be able to get informed about drone-specific locations and restricted drone flying zones too.

A service for photographing projects at the request of the investor will be provided later on.

The platform has a toolkit that helps users, offers measurement tools as well as planning, drawing and annotation features, proximity service searches, cadastral drawing capabilities or Krooki, map printing and a site selection tool for digitally recording coordinates.

Biodiversity sites, reserves, tourist attractions, camping areas and more can also be disclosed. It provides insights into weather and climate conditions through connections to climate monitoring stations in the zones. It also offers information related to soil tests in the Special Economic Zone at Duqm, which is a focal point for future and Artificial Intelligence technologies.

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Oman: E-commerce Decision Issued

Oman Daily Observer, 10 September 2023: Oman’s Commerce, Industry and Investment Promotion Ministry has announced it has issued Oman Ministerial Decision No. 499/2023 to regulate the practice of e-commerce activity in the Sultanate.

E-stores will also have to protect consumer data. Vendors must maintain the confidentiality of consumer data and disclose measures taken to protect the data. They must immediately contact relevant authorities where there is a breach and provide a clear framework for receiving and handling consumer complaints as well as an exchange and return policy on par with current laws and contact information.

A licence to practice e-commerce must be obtained by submitting an electronic application via the Invest Easy portal.

It has been issued as part of a national e-commerce plan and is aimed at creating a legal and regulatory environment for the development and promotion of e-commerce. As part of the plan, an e-commerce complex will be established and the necessary infrastructure to support the sector will be developed.

It is also aimed at documenting local e-stores and facilitating access to e-stores organising operations related to buying and selling via the Internet and reducing e-commerce-related fraud. In addition, it is aimed at keeping up with e-commerce regulation and e-stores monitoring development.

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Oman: Central Bank Instructs Banks to Ensure Freelancers Have Separate Work-related Bank Accounts

Oman Daily Observer, 4 September 2023: Oman’s Central Bank has instructed banks to ensure banks have freelancers and those working independently have separate work-related bank accounts.

They have also been instructed to ensure the appropriate credit facilities are provided to these groups and include them within the percentage specified by the Central Bank to finance SMEs. Freelancing and independent work have been defined as individual businesses that enable an individual to provide services or products without having to establish a workplace or obtain a commercial license.

Banks have to help these groups open bank accounts and ensure they carry out the relevant due diligence in terms of money laundering and terrorist financing. They should notify customers who use their personal accounts for commercial purposes about the importance of opening a separate account and providing credit facilities for this category.

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Oman: Loan Ceiling for SMEs Increased

Oman Daily Observer, 28 August 2023: Oman’s Small and Medium Enterprises Development Authority has announced it has approved an increase in the loan ceiling for SMEs from 5,000 Rials to 20,000.

The aim is to help entrepreneurs launch and expand their projects nationally and internationally. It is hoped this will support the economic contribution of SMEs in the Sultanate.

The Authority also revoked Article 14 of the existing regulation, allowing flexibility in financing beneficiaries in projects other than those previously funded in line with the plans and programmes drawn up by the Authority.

The regulation defines the roles and responsibilities of each of the Small and Medium Enterprises Development Authority and the Oman Development Bank. It also defines the conditions that must be met by those applying for financing from entrepreneurs and craftsmen through a dedicated link with the required documents and data attached.

The regulations include the maximum time period for deciding on financing applications, which is 60 days from the date of completing the application. It also defines the grace period for paying the installments due for financing, the obligations of the beneficiary applying for financing, the mechanism for disbursing the total amount of financing, and the maximum period for disbursing it.

Also reported in Atheer on 27 August 2023. For the full story, click here.

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Oman: Environmental Permit Fees Cut

Oman Daily Observer, 20 August 2023: The Chairman of Oman’s Environment Agency has announced it has issued an environmental permits Decision, cutting fees for environmental permits.

Oman Decision No. 107/2023 has been published in the Official Gazette and revokes the existing Decision covering environmental requirements for service and industrial activities.

Under the previous regulations, there was no ceiling imposed for fines, which in some cases reached 10,000 Rials. The highest fee imposed was 1,500 Rials for three years.

In addition, an activity could not be changed or updated and no advance warning was given before a violation was issued. Under the new regulations, fines imposed cannot exceed the value of the permit or 900 Rials.

There will be more flexibility in updating, changing, or adding new activities and notice before a violation is recorded will be given.

Also reported in Shabiba on 20 August 2023. For the full story, click here.

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Oman: New Real Beneficiary Regulations Issued

Shabiba, 6 August 2023: Oman Ministerial Decision No. 424/2023 which issues the regulation of procedures for establishing a real beneficiary has been issued.

The Ministry of Commerce, Industry and Investment Promotion (MoCIIP) has issued new regulations to strengthen the country’s anti-money laundering (AML) and countering the financing of terrorism (CFT) regime.

The decision also repeals the regulation organising procedures for identifying real beneficiaries issued by Oman Ministerial Resolution No. 630/2022.

The new decision defines a real beneficiary as a natural person who owns or exercises final effective control directly or indirectly over an entity.

The new decision requires commercial companies to create a special register called the “Real Beneficiary Register” which includes data on the real beneficiaries of partners and shareholders who own at least 25% of the company’s shares. Those who fail to comply with this requirement could be subject to a range of penalties including a written warning, administrative fine of 1,000 Rials, or suspension from the commercial register for up to three months.

The data in the register must also be updated, and a real resident person must be designated to carry out the task of coordinating with the Ministry and the competent authorities to provide this information and data.

For the full story, click here.

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