MUSCAT, APRIL 8
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.
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.
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