Question

write about regulatory frameworks of Omani financial services (in 7 pages, containing introduction , main bodies, conclusion)

Answer 1

Introduction

There is no restriction on repatriation of profits, and, the flow of capital. The foreigners may invest in Muscat Securities Markets. They do so through an authorized broker. Access to project financing, and, commercial credit is open to foreign participation with Omani firms. Liquidity is not sufficient for entry, and, an exit of sizeable amounts of capital. The Government is committed to maintaining the currency peg. There are no limitations on outflow or inflow of returns for remittances of profits.

Main bodies

• Central Bank of Oman

• Sharia supervisory Authority - Regulates Islamic Banking; supervise activities; study rulings; study matters being requested; to issue legal religious opinions; to conduct Sharia audit, and, inspection
• Capital Market Authority, Sultanate of Oman - Monetary Policy, Financial Stability, Payment Systems, Laws & Regulations
• Financial Action Task Force - an Intergovernmental organization to combat money laundering
• Middle-East, and, North Africa Financial Action Task Force - To adopt and implement the FATF 40 recommendations for counter terrorist financing, and, money laundering

Capital Market Authority - Organizational Structure

There are two sovereign wealth funds - The Oman Investment Fund; State General Reserve Fund of the Sultanate of Oman. The funds not required by law to publish an annual report. The level of compliance with the Financial Action Task Force recommendations is high

Conclusion

The banking system is sound. CBO maintains the value of the national currency. It regulates Oman's financial services industry.