Designated Non-Financial Businesses and Professions (DNFBPs) are types of businesses and professions that are not typically associated with the financial sector, however, because they deal with moneys including their clients’ money, they are prone to be impacted by the illicit activities. It includes real estate agents, dealers in precious metals (e.g. gold, silver, platinum) and gemstones, legal businesses such as lawyers and notaries, auditors, accountants, insolvency firms, tax consultants and corporate service providers.
Due to their involvement in high-value transactions and connections to international trade, DNFBPs are required to adhere to higher compliance requirements as apply to others (please see our Compliance Series 1 of 3 Article) in order to ensure the integrity and stability of the UAE’s financial system. These include registering and obtaining appropriate licenses from the relevant authorities, having thorough customer due diligence procedures in place, maintaining comprehensive records, establishing robust internal controls, policies, and procedures built on a risk-based approach, appointing a compliance officer to provide training for employees, and having a legal obligation to report any suspicious transactions or activities to the relevant regulatory authorities. Non-compliance with these higher compliance requirements can result in severe penalties, including fines, license revocation and potential criminal prosecution.
The UAE recognizes the significance of DNFBPs in the fight against money laundering and financing of terrorism. The higher compliance requirements placed on DNFBPs demonstrate the country’s commitment to combatting financial crime, ensuring transparency and promoting a secure and stable economic environment.
Is your UAE’s business or company classified as DNFBP? Do you need help in preparing necessary documents for the abovementioned compliance requirements? Drop us an email (office@alphaprimedwc.ae) or give us a call (+971 58 515 2374) to assist you in this specialist, but important area that gaining the significance worldwide.
