CBO issues regulations for money services business
Published: 10:04 AM,Apr 07,2024 | EDITED : 12:04 PM,Apr 08,2024
Muscat: The Central Bank of Oman issued a regulation for money services businesses on Sunday, which included an amendment to the capital and licensing requirements and encouraging the use of modern technology.
Money services business includes buying and selling foreign currencies, dealing in precious metals within the limits permitted under the provisions of these regulations, and brokerage work on behalf of others in that regard (buying and selling foreign currencies), transactions of local or foreign currency transfers inside and outside the Sultanate of Oman, buying and selling of traveler’s checks, remittances, payment of wages through direct or indirect participation in the wage protection system and the provision of related services (payment of wages).
The regulations stipulated that the natural or legal person, owner, founder, or shareholder of five percent or more in the license applicant, must meet the conditions and standards of merit and suitability, including that he must not be less than 25 years old, be of good conduct, possess the necessary experience, and must not have been issued a license. There is a final judgment against him for a crime.
The regulations stipulate that the minimum capital that must be maintained at all times to practice money services is RO50,000 or any other amount determined by the Board of Governors, for the activity of buying and selling foreign currencies, and RO1 million or any other amount determined by the Board of Governors, for remittance activity.
The Central Bank will determine the requirements for additional capital necessary to open branches for the licensee, license the provision of any new services or products to him, or carry out the activity of paying wages.
The Central Bank shall issue its decision to reject or approve the license application after fulfilling all conditions and requirements and paying the prescribed fee, within 90 days from the date of receipt of the license application.
The license will be issued for 3 years, renewable for one or more similar periods. The licensee must begin the licensed activity and provide services to the public within (6) six months from the date of obtaining the license. The regulations stated that the licensee may not establish a branch except after obtaining the approval of the Central Bank and paying the prescribed fee.
The regulations stated that if the natural person who owns the licensed sole proprietorship or one-person company dies, and the license is valid, his heirs or one of them may replace him within 60 days from the date of death.
The regulation excluded tourist, hotel, and commercial establishments that exchange foreign currencies to their customers as part of the services they provide from the prohibition of practicing money services business.
The regulations obligate the licensee to several conditions, including displaying the license, currency exchange rates, transfers, and related fees prominently in the workplace, documenting transactions with clients with the necessary papers and papers, announcing working hours prominently to the public inside and outside the workplace, and maintaining resources, systems, and internal controls. An effective framework for compliance, risk management, and reduction, in a manner consistent with the size of its operations.
It required the main shareholder to commit to retaining his shareholding for no less than three years, from the date of commencing work, and not to be a member of the Board of Directors or the Board of Directors or to work as general manager of any other licensee. The regulations also require shareholders and owners of the licensee not to reduce or increase the capital or withdraw any amounts from the licensee, including their profits, except after obtaining the approval of the Central Bank.
The regulations also stipulate that the licensee must develop and implement a compliance policy for combating money laundering and terrorist financing and follow up on its development, provided that it includes systems and procedures that ensure compliance with all requirements for combating money laundering and terrorist financing stipulated in the relevant legislation and instructions issued by the Central Bank, and procedures that prevent... Any person or entity that deals with the licensee may exploit it as a front for money laundering and terrorist financing.
The regulations include a financial guarantee and the licensee is obligated to provide the financial guarantee to ensure the proper implementation of the licensing conditions and the fulfillment of the obligations stipulated in the regulations, which include RO5,000 or more as determined by the Central Bank, about practicing the activity of buying and selling foreign currencies, and RO100,000 or more, as determined by the Central Bank, for practicing remittance activity, and the amount determined by the Central Bank for practicing wage payment activity, according to the volume of funds.
The Central Bank may impose additional financial guarantees on a case-by-case basis as it deems appropriate.
The regulations authorize the Central Bank to entrust its employees or others with examining the work and records of the licensee and inspecting him according to the procedures and at the times it specifies.
For this purpose, they may enter the places, facilities, and offices in which the activity is carried out, inspect the devices and equipment, and review the accounting books, records, and other papers and documents. Copying it, meeting the employees and discussing them, and taking any other actions.
According to the regulations, the Central Bank shall bear the costs of inspecting the licensee, and the licensee may be obligated to bear those costs if he is inspected by inspectors contracted by the Central Bank.
The regulations permit the Central Bank, in the event of a licensee violating the provisions of the regulations, to prevent the licensee from carrying out certain operations or impose restrictions on the work he carries out, and to terminate the services of the financial controllers, the board of directors, the executive directors, and any of the licensee’s employees, and to manage the licensee for the period it deems appropriate. Or the contract may be entrusted to a person to do so, and a temporary chief executive officer may be appointed at the licensee’s expense.
Administrative penalties
The regulations contain procedures for canceling a license and allow the licensee to request the Central Bank to cancel the license issued to him.
The Central Bank may reject or accept the request according to the conditions it deems appropriate.
The Central Bank may also, at any time, cancel that approval in the event of a violation of any of those conditions. . The regulations indicate that no measures may be taken to declare the licensee bankrupt or compulsorily liquidate him except after the approval of the Central Bank. The regulations stated that the Central Bank shall notify the Ministry of Trade, Industry, and Investment Promotion of any decision it takes to withdraw or cancel the license.
The regulations authorize the Central Bank to impose one or more penalties on the licensee in the event of violating the provisions of the regulations, which are: warning, warning, and imposing a financial fine not exceeding 20 thousand Omani riyals, and imposing a financial fine in the amount of any return or profit achieved for the licensee as a result of those penalties.
Violation means stopping the practice of any of the activities subject to the license, suspending the license for a period determined by the Central Bank, and withdrawing the license.
.
Money services business includes buying and selling foreign currencies, dealing in precious metals within the limits permitted under the provisions of these regulations, and brokerage work on behalf of others in that regard (buying and selling foreign currencies), transactions of local or foreign currency transfers inside and outside the Sultanate of Oman, buying and selling of traveler’s checks, remittances, payment of wages through direct or indirect participation in the wage protection system and the provision of related services (payment of wages).
The regulations stipulated that the natural or legal person, owner, founder, or shareholder of five percent or more in the license applicant, must meet the conditions and standards of merit and suitability, including that he must not be less than 25 years old, be of good conduct, possess the necessary experience, and must not have been issued a license. There is a final judgment against him for a crime.
The regulations stipulate that the minimum capital that must be maintained at all times to practice money services is RO50,000 or any other amount determined by the Board of Governors, for the activity of buying and selling foreign currencies, and RO1 million or any other amount determined by the Board of Governors, for remittance activity.
The Central Bank will determine the requirements for additional capital necessary to open branches for the licensee, license the provision of any new services or products to him, or carry out the activity of paying wages.
The Central Bank shall issue its decision to reject or approve the license application after fulfilling all conditions and requirements and paying the prescribed fee, within 90 days from the date of receipt of the license application.
The license will be issued for 3 years, renewable for one or more similar periods. The licensee must begin the licensed activity and provide services to the public within (6) six months from the date of obtaining the license. The regulations stated that the licensee may not establish a branch except after obtaining the approval of the Central Bank and paying the prescribed fee.
The regulations stated that if the natural person who owns the licensed sole proprietorship or one-person company dies, and the license is valid, his heirs or one of them may replace him within 60 days from the date of death.
The regulation excluded tourist, hotel, and commercial establishments that exchange foreign currencies to their customers as part of the services they provide from the prohibition of practicing money services business.
The regulations obligate the licensee to several conditions, including displaying the license, currency exchange rates, transfers, and related fees prominently in the workplace, documenting transactions with clients with the necessary papers and papers, announcing working hours prominently to the public inside and outside the workplace, and maintaining resources, systems, and internal controls. An effective framework for compliance, risk management, and reduction, in a manner consistent with the size of its operations.
It required the main shareholder to commit to retaining his shareholding for no less than three years, from the date of commencing work, and not to be a member of the Board of Directors or the Board of Directors or to work as general manager of any other licensee. The regulations also require shareholders and owners of the licensee not to reduce or increase the capital or withdraw any amounts from the licensee, including their profits, except after obtaining the approval of the Central Bank.
The regulations also stipulate that the licensee must develop and implement a compliance policy for combating money laundering and terrorist financing and follow up on its development, provided that it includes systems and procedures that ensure compliance with all requirements for combating money laundering and terrorist financing stipulated in the relevant legislation and instructions issued by the Central Bank, and procedures that prevent... Any person or entity that deals with the licensee may exploit it as a front for money laundering and terrorist financing.
The regulations include a financial guarantee and the licensee is obligated to provide the financial guarantee to ensure the proper implementation of the licensing conditions and the fulfillment of the obligations stipulated in the regulations, which include RO5,000 or more as determined by the Central Bank, about practicing the activity of buying and selling foreign currencies, and RO100,000 or more, as determined by the Central Bank, for practicing remittance activity, and the amount determined by the Central Bank for practicing wage payment activity, according to the volume of funds.
The Central Bank may impose additional financial guarantees on a case-by-case basis as it deems appropriate.
The regulations authorize the Central Bank to entrust its employees or others with examining the work and records of the licensee and inspecting him according to the procedures and at the times it specifies.
For this purpose, they may enter the places, facilities, and offices in which the activity is carried out, inspect the devices and equipment, and review the accounting books, records, and other papers and documents. Copying it, meeting the employees and discussing them, and taking any other actions.
According to the regulations, the Central Bank shall bear the costs of inspecting the licensee, and the licensee may be obligated to bear those costs if he is inspected by inspectors contracted by the Central Bank.
The regulations permit the Central Bank, in the event of a licensee violating the provisions of the regulations, to prevent the licensee from carrying out certain operations or impose restrictions on the work he carries out, and to terminate the services of the financial controllers, the board of directors, the executive directors, and any of the licensee’s employees, and to manage the licensee for the period it deems appropriate. Or the contract may be entrusted to a person to do so, and a temporary chief executive officer may be appointed at the licensee’s expense.
Administrative penalties
The regulations contain procedures for canceling a license and allow the licensee to request the Central Bank to cancel the license issued to him.
The Central Bank may reject or accept the request according to the conditions it deems appropriate.
The Central Bank may also, at any time, cancel that approval in the event of a violation of any of those conditions. . The regulations indicate that no measures may be taken to declare the licensee bankrupt or compulsorily liquidate him except after the approval of the Central Bank. The regulations stated that the Central Bank shall notify the Ministry of Trade, Industry, and Investment Promotion of any decision it takes to withdraw or cancel the license.
The regulations authorize the Central Bank to impose one or more penalties on the licensee in the event of violating the provisions of the regulations, which are: warning, warning, and imposing a financial fine not exceeding 20 thousand Omani riyals, and imposing a financial fine in the amount of any return or profit achieved for the licensee as a result of those penalties.
Violation means stopping the practice of any of the activities subject to the license, suspending the license for a period determined by the Central Bank, and withdrawing the license.
.