DESIGNATED NON-FINANCIAL BUSINESSES AND PROFESSIONS

Designated Non-Financial Businesses and Professions “DNFBPs” are defined by FATF as:

  • Casinos
  • Real estate agents.
  • Dealers in precious metals.
  • Dealers in precious stones.
  • Lawyers, notaries, other independent legal professionals and accountants – this refers to sole practitioners, partners or employed professionals within professional firms. It is not meant to refer to ‘internal’ professionals that are employees of other types of businesses, nor to professionals working for government agencies, who may already be subject to AML/CFT measures.
  • Trust and Company Service Providers refers to all persons or businesses that are not covered elsewhere under these Recommendations, and which as a business, provide any of the following services to third parties:
  • acting as a formation agent of legal persons;
  • acting as (or arranging for another person to act as) a director or secretary of a company, a partner of a partnership, or a similar position in relation to other legal persons;
  • providing a registered office; business address or accommodation, correspondence or administrative address for a company, a partnership or any other legal person or arrangement;
  • acting as (or arranging for another person to act as) a trustee of an express trust or performing the equivalent function for another form of legal arrangement;
  • acting as (or arranging for another person to act as) a nominee shareholder for another person.

DNFBPs play a key role in protecting financial systems and economies from ML and TF risks, as gatekeepers, they are exposed to tremendous amount of information, and act on behalf of their customers in many transactions. Some of these transactions are high vulnerable to ML/TF risks due to the nature of product or service offered by DNFBPs. Some examples could be the following:

  • - A lawyer or legal services provider structure different legal arrangements for its customers,
  • - An accountant or auditor who provide professional services to prepare and arrange financials for group of companies and deal       with different accounting treatments,
  • - A dealer in precious metals sell high value items and accept payments in cash.

FATF Recommendations set the main requirements and expectation from DNFBPs, under the UAE Federal Law, DNFBPs are required to meet some certain obligations, and ADGM AML Rules specify these obligations under FATF Recommendations and UAE Federal Law.

All Relevant Persons who are conducing one of more of the activities classified as DNFBPs are required to be in compliance with ADGM AML Rules.