To: All Licensed Banks operating in the Sultanate of Oman

After Compliments,

Re: Bancassurance

1. Reference is invited to Circular BM 908 dated 21 January 2001, circular letters BDD/CBS/CB/2003/2165 dated 2 June 2003 and BDD/CBS/ CB/2003/3916 dated 2 September 2003.

2. In the light of correspondence exchanged with licensed banks and the Ministry of Commerce and Industry, the Insurance Regulator, and taking a total view of unfolding bancassurance at this stage, it has been decided to allow licensed banks to act as insurance agents, subject to the following:

   • i) Ministry of Commerce and Industry has allowed banks to act as agents, insurance being restricted to the bank’s property, employees and transactions (and not non-customers). Attached is copy of the guidelines received from the Ministry of Commerce and Industry, which banks shall strictly adhere to now.

     Ministry of Commerce & Industry may come out with a formal regulation on the subject in due course.

     ii) For the purpose of reiteration, the Central Bank highlights hereunder the salient features of approval.

     a) Banks shall choose to act only as agents and not brokers.