Oman introduces new regulations for digital banks, focusing on stability and security.

From Yahoo Finance: 2025-06-05 07:24:00

The Central Bank of Oman has introduced a regulatory framework for digital banks, effective June 1, 2025. It includes relaxed regulations and business restrictions, requiring applicants to be a locally incorporated joint-stock company or a foreign branch subject to regulatory oversight. Two license categories with varying capital requirements are defined.

Applicants must have fintech industry experience and financial capacity. They must maintain a team with expertise and meet fit and proper criteria. Foreign digital bank branches need approval from their home supervisory authority. Licensed digital banks must establish a physical presence in Oman and comply with anti-money laundering laws in a digital environment.

Digital banks must follow frameworks for consumer protection, cybersecurity, digital onboarding, anti-fraud measures, and outsourcing rules. The framework prohibits shell banks and emphasizes compliance with applicable laws. This regulatory framework aims to ensure the stability and security of digital banking operations in Oman.

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