What does DNFBP mean in FINANCE
In the financial sector, the abbreviation DNFBP stands for Designated Non-Financial Businesses and Professions (DNFBPs). These are entities and professionals that are not primarily engaged in financial activities but are nevertheless subject to anti-money laundering (AML) and counter-terrorism financing (CTF) regulations due to their potential involvement in financial crime.
DNFBP meaning in Finance in Business
DNFBP mostly used in an acronym Finance in Category Business that means Designated Non Financial Businesses and Professions
Shorthand: DNFBP,
Full Form: Designated Non Financial Businesses and Professions
For more information of "Designated Non Financial Businesses and Professions", see the section below.
Meaning of DNFBP in Business
DNFBPs include a wide range of businesses and professions, such as:
- Real estate agents
- Lawyers
- Accountants
- Notaries
- Jewelers
- Dealers in precious metals and stones
- Casinos
These entities are considered DNFBPs because they may handle large sums of money or facilitate financial transactions, making them vulnerable to money laundering and other financial crimes.
Essential Questions and Answers on Designated Non Financial Businesses and Professions in "BUSINESS»FINANCE"
What is a DNFBP?
A Designated Non-Financial Business and Profession (DNFBP) is a business or profession that is considered to be at a higher risk of money laundering or terrorist financing due to the nature of its activities.
What are examples of DNFBPs?
Examples of DNFBPs include real estate agents, lawyers, accountants, and trust and company service providers.
What regulations apply to DNFBPs?
DNFBPs are subject to enhanced due diligence and record-keeping requirements under anti-money laundering (AML) and counter-terrorist financing (CTF) regulations.
What are the enhanced due diligence requirements for DNFBPs?
Enhanced due diligence requirements include obtaining and verifying additional customer information, such as source of funds and beneficial ownership, and conducting ongoing monitoring of customer activities.
Why are DNFBPs subject to enhanced due diligence?
DNFBPs are often involved in transactions that involve large sums of money or can be used to conceal illicit activities, making them more susceptible to money laundering and terrorist financing.
What are the consequences of non-compliance with DNFBP regulations?
Non-compliance with DNFBP regulations can result in financial penalties, reputational damage, and regulatory sanctions, including the loss of licenses or permits.
How can DNFBPs comply with regulations?
DNFBPs can comply with regulations by implementing effective AML/CTF policies and procedures, conducting regular risk assessments, and training staff on their AML/CTF responsibilities.
Final Words: DNFBPs play a crucial role in combating financial crime by complying with AML and CTF regulations. They are required to conduct customer due diligence, report suspicious transactions, and maintain records of their financial activities. By adhering to these regulations, DNFBPs help prevent the flow of illicit funds and protect the integrity of the financial system.