In the jargon of the Financial Action Task Force (FATF), the international anti-money laundering standard-setting body, these non-FSP sectors are known as Designated Non-Financial Businesses and Professions (DNFBPs
Racela said the Philippines would now be more technically compliant with international standards as the Asia Pacific Group on Money Laundering (APG) which cited the country's lack of a regulatory framework for DNFBP
in its last mutual evaluation in 2008.
To combat this, the Cayman Islands enhanced its AML supervision for DNFBPs
that trade or store precious metals and stones and financial derivatives within the Special Economic Zone.
1 of 2004 (Regulatory Law 2004) under which the regulation of DIFC Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) requirements for DNFBP
in the DIFC is transferred to the DFSA.
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).
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." (42) In the event the financial institution and DNFBP
cannot comply, the financial institution should terminate business relations or not undertake a 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.
If adopted, a new Recommendation should require governments to ensure, among other things, that traders adopt a customer identification program, conduct customer due diligence, increase the scope and quality of record keeping, and file suspicious activity reports or suspicious transaction reports, just as financial institutions and DNFBP
must do under current AML/CFT standards.
The Anti-Money laundering and Terrorist Financing Regulations include provisions to cover PEPs and ensure enhanced due diligence is done before such persons are accepted as customers of any service provider or DNFBP
. The draft Anti-Money Laundering and Terrorist Financing Code 2014 was revised and is again before the Attorney General for review.
In addition to 2014 amendments to several acts, regulations were also promulgated or strengthened to include: Designated Non-Financial Business or Profession (DNFBP
) Regulation; International Financial Services Commission; National Anti-Money Laundering regulations; Gaming--administrative penalty regulations; and the Misuse of Drugs Order.
The Cayman Islands reportedly is considering changes to its AML/CFT regime, including incorporating a risk-based approach in money laundering regulations; implementing a supervisory framework for DNFBPs
and non-profit organizations, imposing administrative penalties for financial and DNFBP
supervisors; incorporating tax crimes as a money laundering offense under the Proceeds of Crime Law; and increasing human resources for the FRA and the Financial Crimes Unit of the Royal Cayman Islands Police Service.