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DNFBPs subject to PMLA, 2002
DNFBPs subject to PMLA, 2002
Along with banks and other financial institutions, the Prevention of Money Laundering Act 2002 also designates certain entities conducting specified financial transactions. This includes real estate agents, dealers in precious metals, precious stones and other high-value goods, practising Chartered Accountants (CA), Company Secretaries (CS) and Cost & Works Accountants (CMA).
Here is a detailed visual note on Designated Non-Financial Businesses and Professions (DNFBPs) subject to AML regulatory obligations under PMLA, 2002, including listing activities qualifying the person as DNFBP.
AML India is a consultancy firm supporting eth regulated entities, including DNFBPs, in India to implement and comply with the PMLA, 2002. AML India offers complete AML support to regulated entities, starting from assessing the business’s ML/FT vulnerabilities and designing and deploying the AML policies, procedures, systems and controls to handle these ML/FT risks. AML India also imparts comprehensive training to the entities to effectively safeguard the business against financial crimes and stay 100% PMLA compliant.
What is a DNFBP?
DNFBPs are designated non-financial businesses or professions, brought within AML obligations because their activities may be used to move, conceal or disguise illicit funds. Under the FATF Recommendations, DNFBPs include casinos, real estate agents, dealers in precious metals and stones, lawyers and notaries, accountants, and trust and company service providers.
Who are the DNFBPs under the PMLA in India?
Under the PMLA, a person carrying on a designated business or profession includes those engaged in activities relating to games of chance and casinos, real estate agents above a prescribed turnover, dealers in precious metals and stones, and specified professionals performing defined financial transactions for clients.
Are lawyers DNFBPs in India?
No. Lawyers are not included in the list of DNFBPs under the Prevention of Money-Laundering Act, 2002, even though the FATF Recommendations include lawyers, notaries and other independent legal professionals in the DNFBP category.
What obligations does a DNFBP have?
DNFBPs that fall within the PMLA are reporting entities and carry the full set of obligations such as customer due diligence, beneficial ownership identification, record-keeping for the prescribed period, registration with FIU-IND, and reporting of prescribed and suspicious transactions.
We are committed to assisting proper enforcement of AML and CFT regulations to regulated entities in India by designing a personalised AML framework – policies, internal controls, and procedures – and ensuring effective implementation of the same.
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