Recommendation 21 requires that financial institutions and DNFBP pay "special attention" to business relationships and transactions with persons from countries that do not or insufficiently apply the FATF Recommendations (although it does not say how this is to differ from non-special (or average) attention).
rules comply with these requirements, except that DNFBP include casinos only.
Specifically, financial institutions and DNFBP must "understand the purpose, intended relationship, and conduct with the customer, undergo ongoing customer due diligence in the business relationship," and must undertake a "scrutiny of transactions through the course of the relationship to ensure that the transactions being conducted are consistent with the institution's knowledge of the customer, its business and risk profile, including, where necessary, the source of funds.
46) FATF Recommendation 5 now allows financial institutions and DNFBP to determine the extent of such measures on a risk-sensitive basis, depending on the type of customer, business relationship, or transaction.
Cuba should ensure its CDD measures and SAR requirements include domestic PEPs, all DNFBPs
, and the NPO sector, and create appropriate laws and procedures to enhance international cooperation and mutual legal assistance.
108) While the original 40 Recommendations address states, financial institutions, and DNFBP, (109) the 9 Special Recommendations address entities and organizations not previously covered by the FATF.
154) The new Recommendation would need to require governments to take a number of actions to ensure, among other things, that exporters and importers conduct customer due diligence, keep records, and file suspicious transaction reports, just as financial institutions and DNFBP currently are expected to do.
The regulatory body with the mandate to supervise the offshore financial sector and DNFBPs is the Financial Services Authority.
The major outstanding AML deficiencies relate to the supervision and regulation of DNFBPs.
However, compliance from the DNFBP sector is lacking.
The list of DNFBPs includes realty agents; dealers in precious metals, stones, antiques and art; legal advisors and lawyers; accountants; auditors; notaries; and casinos.
Additionally, the DFSA will shortly be contacting all DNFBPs
within the DIFC to provide training and guidance on the changes.