Rules and Regulations

What is a DNFBP?

DNFBP stands for “Designated Non-Financial Business and Professions”(DNFBP). Certain types of “non-financial” businesses have been identified as being susceptible to money laundering and terrorist financing due to the nature of their business and the transactions with activity that they may conduct. The following class of persons whose business or profession is carried on in or from within UAE is a DNFBP:

• Real estate developers and agents that carry out transactions with a customer involving the buying or selling of real property;
• Dealers in precious metals and dealers in precious stones;
• Law firms, notary firms and other independent legal businesses;
• Accounting firms, audit firms or insolvency firms;
• Company service providers that carry out any of the following activities for a customer:
  1. acting as a formation agent of legal persons;
  2. acting as (or arranging for another person to act as) a director or secretary of a company, a partner of a partnership, or a similar position in relation to other legal persons
  3. providing a registered office, business address or accommodation, correspondence or administrative address for a company, a partnership or any other legal person or arrangement
  4. acting as (or arranging for another person to act as) a nominee shareholder for another person

These include identifying and assessing ML/FT risks :

• Establishing, documenting, and updating policies and procedures to mitigate the identified ML/FT risks
• Maintaining adequate risk-based Client Due Diligence (CDD) and ongoing monitoring procedures
• Identifying and reporting suspicious transactions
• Putting in place an adequate governance framework for AML/CFT, including appointing an AML/CFT Compliance Officer, and ensuring adequate staff screening and training
• Maintaining adequate records related to all of the above and
• Complying with the directives of the Competent Authorities of the State in relation to the United Nations Security Council resolutions under Chapter VII of the Charter of the United Nations, as well as in relation to Cabinet Decision No. (20) of 2019 Regarding Terrorism Lists Regulation and Implementation of UN Security Council Resolutions On the Suppression and Combating of Terrorism, Terrorists Financing & Proliferation of Weapons of Mass Destruction, and Related Resolutions
• Cooperate with the Executive Office and the relevant Supervisory Authority in verifying the accuracy of the submitted information.
• Implement the freezing cancellation or lifting decision, when appropriate, without delay, pursuant to Related UNSCR or decisions of the Cabinet regarding issuance of Local Terrorist List.
• Set and implement: Internal controls and procedures to ensure compliance with the obligations arising from Cabinet Resolution No. 74 of 2020.

Policies and procedures that prohibit staff from, directly or indirectly, informing the Client or any third party that freezing action or any Other Measures are going to be implemented as per provisions of Cabinet Resolution No. 74 of 2020.

The Ministry of Economy, as the supervisory authority, is entrusted with the supervision of the ‘Designated Non-financial Businesses and Professions’ (DNFBPs) sector at the state level and commercial free zones in order to combat money laundering and financing of terrorism.

• MOE guidance on DNBFP
• MOE guidance for Real estate sector
• MOE guidance for Precious Metals & Stones dealers
• MOE guidance for Accounting & Auditors
• MOE guidance for Service Providers