Designated Non-Financial Businesses and Professionals (DNFBPs) are characterised as non-regulated entities, as they are not strictly regulated by the Financial Services Commission. They are defined as relevant business under section 2 of the Anti-Money Laundering Regulations 2008 and are designated pursuant to section 2 of the Non-Financial Business (Designated) Notice, 2008 for the purpose of identifying entities which are vulnerable to being misused for Money Laundering and Terrorist Financing. They include persons who are engaged in the businesses of buying and selling boats, vehicles, jewellery or other high-value goods as well as those who provide client services, such as legal practitioners, notaries public and accountants involved in transactions concerning the buying and selling of real estate; managing of client money, securities or other assets; organisation of contributions for the creation, operation or management of companies or the buying and selling of business entities.
Section 3 of the Anti-Money Laundering Regulations 2008 and section 11 of the Anti-Money Laundering and Terrorist Financing Code of Practice 2008 stipulates that all entities including DNFBPs must ensure compliance with the anti-money laundering and terrorist financing measures set out therein. This is to be achieved through the establishment of a robust internal control system which must include:
A written compliance programme
Effective customer due diligence and identifications verification
Sound record keeping protocol for a minimum of five years; and
Comprehensive employee training in the relevant anti-money laundering and terrorist financing laws, including the ability to identify suspicious activities/transactions without “tipping off” the client.
Part of the Financial Investigation Agency´s function is the duty imposed by the current AML regime to ensure full compliance by non-regulated entities through monitoring and supervision. In so doing, the Agency is expected, pursuant to Section 9 of the Anti-Money Laundering and Terrorist Financing Code of Practice 2008, to review each entity´s risk assessments on money laundering and terrorist financing through a series of inspections. These inspections can occur on- or off-site depending on the level of risk attributed to the particular entity.
The Agency looks forward to a cooperative relationship with all DNFBPs in the Territory.