What are DNBFBPs?
Over the years, the techniques used by money launderers and financial criminals have evolved in response to governmental and institutional countermeasures. In the late 1990s, facing increased anti-money laundering legislation and more advanced AML/CTF procedures in credit and financial institutions, some money launderers resorted to the non-financial sector to conceal their criminal revenues.
In response to this trend, the FATF released guidelines on Designated Non-Financial Businesses and Professions (DNFBPs) that have similar potential to financial institutions to be used for money laundering. It was proposed that DNFBPs be subject to AML/CTF regulations in order to prevent criminal activity.
Which industries are classed as DNFBPs?
What is classed as a DNFBP varies depending on jurisdiction. Usually, at least the following professions are included:
- Auditors, external accountants, and tax advisors
- Casinos and other gambling service providers
- Company service providers
- Dealers in precious metals
- Dealers in precious stones
- Notaries and other independent legal professionals
- Real estate agents
In most jurisdictions today, DNFBPs are regulated in much the same way as credit and financial institutions. Some also have tailored regulations to counter the unique money laundering threats posed by different types of DNFBP.