Designated Non-Financial Businesses and Professions (DNFBPs) refer to businesses and professions that are not related to financial institutions but are still vulnerable to money laundering and terrorist financing. DNFBPs in Pakistan include real estate agents, dealers of precious metals and stones, lawyers, accountants, trust and company service providers, and notaries.
The Financial Action Task Force (FATF), an international inter-governmental body, has identified DNFBPs as high-risk areas for money laundering and terrorist financing. As a result, the FATF has set out specific requirements for the implementation of anti-money laundering and counter-terrorism financing measures for DNFBPs.
In Pakistan, the Anti-Money Laundering Act, 2010 (AMLA) and the Anti-Money Laundering and Countering Financing of Terrorism Regulations, 2018 (AML/CFT Regulations) provide the legal framework for combating money laundering and terrorist financing activities by DNFBPs. The regulations require DNFBPs to conduct customer due diligence, keep records of transactions, and report suspicious activities to the relevant authorities.
Real estate agents are required to verify the identity of their customers, maintain records of all transactions, and report any suspicious transactions to the relevant authorities. Similarly, dealers of precious metals and stones are required to keep records of transactions and report suspicious activities. Lawyers and accountants are required to maintain records of their clients and report any suspicious activities.
Trust and company service providers are also required to conduct customer due diligence and maintain records of their clients. Notaries are required to verify the identity of their clients and maintain records of transactions.
Failure to comply with these regulations can result in penalties, fines, and even imprisonment. Therefore, it is important for DNFBPs in Pakistan to understand and comply with the anti-money laundering and counter-terrorism financing measures outlined by the FATF, AMLA, and AML/CFT Regulations.
In conclusion, DNFBPs in Pakistan are vulnerable to money laundering and terrorist financing activities. The FATF has identified DNFBPs as high-risk areas and has set out specific requirements for implementing anti-money laundering and counter-terrorism financing measures. It is important for DNFBPs to comply with these regulations to avoid penalties and ensure the safety and security of the country.
