DNFBP's

DNFBP stands for Designated Non-Financial Businesses and Professions.

If you are a UAE DNFBP, you are in the Regulatory Spotlight. The UAE’s Ministry of Economy revealed that in the first quarter of 2023, fines worth AED 65.9 million were imposed on 137 companies operating in the DNFBP sector.

DNFBP’s can include a wide range of entities, such as:

Real estate agents and brokers
Lawyers, notaries, and other legal professionals
Accountants and auditors
Casinos and other gambling establishments
Dealers in precious metals and stones
Trust and company service providers
Art dealers and auction houses

While Banks and financial Institutions are typically subject to strict AML and CFT regulations to prevent money laundering and the funding of terrorist activities; DNFBP’s are vulnerable to being exploited for money laundering or terrorist financing activities and so are also regulated entities.

Global regulatory requirements to eliminate Money Laundering and Financial Crime are the reason for the enhanced focus on these business areas. Regulatory Compliance is a detailed and complex subject. Deliberately so because it is designed to identify and eliminate criminal activity operating through naïve businesses.

If government inspections find you to be non-compliant, you risk substantial fines that can cripple your business, damage your professional and personal credibility, and may result in revocation of your business license – or even jail terms.

By regulating DNFBP’s, the UAE government helps to ensure that those engaged in these industries are not facilitating or unknowingly involved in money laundering or terrorist financing activities.

To mitigate the risk of fines for Regulatory Non-Compliance; DNFBP’s should ensure they have undertaken comprehensive and fit-for-purpose Compliance Reviews.

These must include the following areas:

FIU / GoAML and MLRO registration and verification.
On-boarding policies, procedures, and systems must be in place to cover clients, staff, and vendors.
KYC Due Diligence and ongoing due diligence policies.
AML reviews and assessments.
PEP and UBO identification and verification.
Risk Assessments and Transaction Monitoring.
STR reporting and SAR assessments.
AML and CTF Policies and Procedures specific to your organisation – ‘one size fits all’ does not work in Regulatory Compliance.
Staff training and knowledge-based assessments must be undertaken.

Things to consider.

Many accounting firms also offer Compliance Reviews for DNFBP’s. However, they themselves are DNFBP’s and this may present a conflict of interest.

Accountants are not Compliance Professionals and Compliance Professionals are not Accountants – be wary of people who claim to be both.
TCC is not a DNFBP. As such, there is no conflict of interest in us providing our specialist Compliance / AML Services to DNFBP’s. Prior to obtaining our trade license, we obtained permission from our licensing authority for TCC to deliver Compliance and AML Services to our clients. This approval was based on 25 years of Regulatory Compliance experience and relevant professional qualifications.

Compliance is all we do. It is why we are called “The Compliance Connection’.

If you are a DNFBP, it is incumbent upon you to ensure that there is no conflict of interest presented by any organization you appoint to undertake your Compliance Assurance Review.

Further, you must check that any appointed specialist has the requisite skills, experience, and knowledge to ensure full compliance with the UAE’s Anti-Money Laundering (AML) and Counter Terrorist Financing (CFT) laws and regulations.

DNFBP's

We Also Help With

AML / CTF
Review

Assurance
Reviews

Compliance Documentation

DNFBP's

Employee
Training

Fraud Investigations

Internal Audits

Risk Assessment

Financial Services Regulation is an evolving and ever-changing industry. Contact TCC to see how we can assist you in being regulatory compliant.