To: All Licensed Banks and Financing Companies Operating in the Sultanate of Oman

Subject: Statutory Requirement to Maintain Confidentiality on Banking Transactions

1. The Central Bank is aware that there is a certain amount of uncertainty and ambiguity, generally among the licensed banks, on the requirement to comply with the stipulations in Article 70 of Oman Sultani Decree No. 114/2000 the Banking Law, particularly when the necessity arises for the banks to pursue action, mostly through recourse to litigation, for recovery of advances from customers who have defaulted to honour their obligations. When such situations arise, the banks have to disclose information relating to their customers, particularly to investigators and legal consultants or share such information among banks that have a common interest on such accounts, to enable such parties to conduct further investigations before filing action in the courts.