New Guidelines on Cash and Gold Declarations: Essential Compliance Tips for Businesses in Oman
Muscat: In a move to ensure adherence to local and international financial regulations and to combat money laundering and terrorism financing, Oman Customs has released a comprehensive guide for handling cash at border checkpoints.
The guide emphasizes that any individual entering or leaving Oman must declare any currency or bearer-negotiable instruments they possess, as well as any arrangements for their transfer by mail or shipping services. This obligation arises when the total value reaches RO6,000 or an equivalent amount in other currencies.
Failure to declare or submitting a false declaration—whether by providing misleading information or concealing essential details—can lead to severe penalties. Offenders may face imprisonment for up to three years and/or fines reaching RO10,000. If the offender is a legal entity, fines will be no less than RO10,000 and will not exceed the total value of the involved funds.
The Customs Authority has the right to request further information regarding the source and intended use of the funds from travelers.
The guide clarifies that currency encompasses both banknotes and coins that are currently in circulation, while bearer-negotiable instruments include checks, promissory notes, and payment orders that can be endorsed without limitations. These instruments facilitate the transfer of ownership through simple physical handover, including signed documents with missing recipient information.
Additionally, the term "beneficial owner" refers to the individual who ultimately controls or owns the client, either directly or indirectly, including those on whose behalf a transaction is conducted.
Travelers are encouraged to file a voluntary declaration using an electronic cash declaration system prior to reaching their destination and submit this upon arrival at the Customs Department.
Definitions are provided for "false declaration"—which involves inaccurate or misleading information—and "non-declaration," which refers to the failure to disclose pertinent information during customs inspections. Travelers must present valid identification documents, customs declarations, invoices, and any relevant documentation supporting the source of funds, especially if the funds belong to legal entities.
For funds departing Oman, similar documentation is required, including customs declarations and invoices linked to the sale of goods, bank transfers, and authorized signatory lists for legal entities.
Incoming and outgoing funds transiting through Oman must also comply with these regulations, necessitating a cash declaration from the country of origin, along with supporting documents like flight tickets and customs declarations.
Gold transactions follow the same rules; a cash declaration is required if the value exceeds RO6,000.
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Oman’s new guidelines for cash handling at borders highlight increased regulatory scrutiny aimed at combatting money laundering and terrorism financing. This creates both opportunities and risks for businesses, as adherence to these regulations could enhance reputational credibility but also introduce compliance challenges. Smart investors and entrepreneurs should consider investing in compliance technologies and advisory services to navigate these regulations effectively, positioning themselves ahead in a more regulated financial landscape.
