Introduction
What are DNFBPs?
Designated Non-Financial Businesses and Professions (DNFBPs) are non-financial sector entities that, due to the nature of their less regulated environment compared to financial institutions, are vulnerable to misuse for money laundering (ML) and terrorist financing (TF). Though not part of the formal financial sector, they often handle large financial transactions, assist in moving assets, or create legal structures that can be exploited to hide illicit wealth to:
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Launder proceeds of crime
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Conceal beneficial ownership
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Fund terrorist activities discretely
DNFBPs Regulated by FBR in Pakistan
As per Section 6A of Pakistan's Anti-Money Laundering Act, 2010, the Federal Board of Revenue (FBR) regulates the following DNFBP categories:
a) Real Estate Agents
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Include agents, developers, builders, housing societies, and title-transferring entities.
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High ML risk due to high-value property transactions and cash transactions.
b) Dealers in Precious Metals and Stones (DPMS)
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Include gold, silver, diamond, and jewelry dealers.
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High TF risk due to mobility and high value of assets, often operating in cash.
c) Accountants & Trust/Company Service Providers (TCSPs)
(Excluding ICAP/ICMAP members)
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Provide services like real estate dealings, company formation, managing client money/assets, and advisory.
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Risk stems from enabling complex ownership structures or asset movement without transparency.
