Ministry of Commerce, Industry and Investment Promotion Reminds Traders of Non-Cash Rules
The Ministry of Commerce, Industry and Investment Promotion (MoCIIP) has issued a regulatory reminder to all businesses involved in buying and selling precious metals and valuable stones across Oman. Under Ministerial Decision No. 425/2023, commercial entities are strictly required to enforce non-cash payment channels for high-value transactions. The directive reinforces national anti-money laundering (AML) frameworks and counter-terrorist financing standards, ensuring full financial transparency across the Sultanate's jewelry and bullion trade sectors.
OMR 5,000 Threshold and Mandatory Payment Methods
The regulatory requirement applies to any sale or purchase transaction involving gold, silver, platinum, or valuable gemstones that equals or exceeds OMR 5,000. For transactions reaching or surpassing this threshold, cash payments are strictly prohibited. Merchants and customers must complete payments using approved banking and electronic channels, including:
- Electronic Payment Terminals: Point-of-sale (POS) card transactions and digital wallets.
- Bank Transfers: Direct electronic funds transfers between registered corporate or personal accounts.
- Bank Cheques: Certified or standard bank cheques routed through regulated financial institutions.
Administrative Penalties and Business Suspension Risks
To guarantee strict compliance across retail and wholesale markets, the Ministry of Commerce, Industry and Investment Promotion has outlined clear administrative penalties for non-compliant businesses. Violators face a minimum administrative fine of OMR 500 per infraction. Additionally, regulatory authorities hold the statutory power to suspend the offending company's commercial activity for up to three months. Repeated violations may trigger further legal escalation, including license reviews and financial audits by relevant enforcement bodies.
Strengthening Financial Oversight in Oman’s Gold and Jewelry Market
Mandating electronic and banking channels for high-value trades eliminates paper-based transaction opacity in the gold and gemstone sectors. The measure provides regulatory bodies with clear audit trails, making it significantly harder for unverified capital or illegal funds to enter the local economy. Establishing standardized digital transaction practices safeguards legitimate jewelry traders, protects consumer rights, and aligns Oman's commercial practices with global financial compliance standards.
Strategic Alignment with National Financial Transparency Goals
Ultimately, the Ministry of Commerce, Industry and Investment Promotion’s continued enforcement of Ministerial Decision No. 425/2023 supports the Sultanate’s broader economic modernization goals under Oman Vision 2040. Restricting large cash transactions enhances national fiscal governance, accelerates digital payment adoption, and reinforces international confidence in Oman’s banking and trade systems. Gold and precious metal merchants across the Sultanate are urged to update their point-of-sale operations to ensure complete compliance during high-value sales.
