DNFBPs

DNFBPs, or designated non-financial businesses and professions, are groups identified by the Financial Action Task Force (FATF) as having a higher potential to be used for money laundering or terrorist financing. While not financial institutions themselves, DNFBPs can interact with large sums of money and complex transactions, creating AML/CFT vulnerabilities.

Common DNFBP sectors include casinos and gambling facilities; real estate agents; dealers in precious metals and stones; lawyers, notaries, and other independent legal professionals who prepare or carry out financial or property transactions; accountants and accountancy firms; trust and company service providers; and dealers in works of art, antiques, or other high-value items. The precise designation can vary by jurisdiction, but these sectors are typically subject to AML/CFT requirements under national laws aligned with FATF standards.

Obligations for DNFBPs generally cover customer due diligence (CDD) and enhanced due diligence (EDD) for higher-risk relationships, ongoing monitoring of business relationships, and record-keeping. They are also typically required to report suspicious activity to the national financial intelligence unit and to implement internal controls, risk assessments, and staff training. Some regimes require appointment of a designated compliance officer and periodic independent audits.

Global, FATF-based frameworks require jurisdictions to regulate DNFBPs with proportionate, risk-based measures to deter money laundering and terrorist financing, while balancing legitimate professional responsibilities. Non-compliance can attract penalties and supervisory action by competent authorities.