Designated Non-Financial Businesses and Professions (DNFBPs)

Definition: Designated Non-Financial Businesses and Professions (DNFBPs) refer to specific categories of businesses and professions that are vulnerable to being exploited for money laundering or terrorist financing purposes, even though they may not be traditional financial institutions. These entities are typically engaged in activities that involve significant cash transactions, high-value assets, or confidential client information, making them susceptible to illicit financial activities. DNFBPs are subject to anti-money laundering (AML) regulations and obligations to prevent their services from being misused for illicit purposes.

Practical Examples:

1. Real Estate Agents: Real estate agents and brokers are considered DNFBPs as they engage in transactions involving substantial amounts of money, such as property sales, rentals, and investments, which can be used to launder illicit funds.
2. Lawyers and Notaries: Legal professionals who provide services related to property transactions, trust and company formation, or managing client funds fall under the category of DNFBPs due to their potential involvement in facilitating money laundering activities.
3. Accountants and Auditors: Professionals offering accounting, auditing, or tax advisory services are considered DNFBPs, as their expertise and access to financial information can be exploited for money laundering or terrorist financing.

Statistics and Relevant Numbers:

• According to the Financial Action Task Force (FATF), DNFBPs account for a significant proportion of money laundering risks globally.
• A report by the Basel Institute on Governance estimates that DNFBPs contribute to approximately 10-20% of total global money laundering transactions.
• The International Monetary Fund (IMF) highlights that DNFBPs often serve as gateways for money launderers to legitimize illicit funds through their various business activities.

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