What are designated non-financial businesses and professions?
DNFBPs (Designated Non-Financial Businesses and Professions) are businesses outside the traditional financial sector that are subject to AML regulations due to their vulnerability to money laundering exploitation. The FATF identifies specific categories of non-financial businesses that must implement AML controls.
FATF-designated categories
The FATF names the businesses and professions that must apply AML controls alongside banks.
Real estate agents
Real estate is one of the most commonly exploited sectors for money laundering, particularly at the integration stage. The UK National Risk Assessment rates property as a high-risk area.
Legal professionals
Lawyers and notaries are subject to AML obligations when they prepare or carry out transactions involving buying and selling real property, managing client money, creating or managing legal entities, or buying and selling business entities.
Accountants
Accountants and auditors are regulated when preparing or carrying out transactions for clients in areas including tax advisory, asset management, and company formation.
Trust and company service providers
TCSPs face particular exposure due to the potential for entity formation services to be exploited for ownership obfuscation and layering of criminal proceeds.
Dealers in precious metals and stones
Precious metals and stones dealers are regulated when conducting cash transactions above applicable thresholds, reflecting the portability and value density of these commodities.
Expanding scope
The FATF and national legislators continue to expand the categories of non-financial businesses subject to AML obligations. Recent additions include crypto asset service providers, art dealers, and letting agents. The gaming and casino sector has long been subject to AML controls due to the cash-intensive nature of the business.
For a comprehensive analysis of challenges facing each sector, see our industry challenges page.
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