Why are Designated Non-Financial Businesses and Professions (DNFBPs) Important to High Net Worth Individuals? The Role of Professional Associations

16 Pages Posted: 11 Apr 2018

See all articles by Teju Somorin

Teju Somorin

Caleb University - College of Social and Management Sciences

Date Written: February 21, 2018

Abstract

In response to the trend of money launderers resort to the non financial sector to conceal their illicit and criminal incomes, the Financial Action Task Force (FATF) released Standards on Designated Non-Financial Businesses and Professions (DNFBPs)to require countries to improve their Anti-Money Laundering and Counter Financing of Terrorism (AML/CFT) measures on DNFBPs. FATF developed standards, commonly known as the Recommendations on Anti-Money Laundering and Counter-Terrorist Financing. The Standards include that DNFBPs be subject to AML/CTF regulations in order to prevent criminal activity. In February 2012, the FATF published revised recommendations which deal with risks relating to money laundering, terrorist financing, the financing of the proliferation of weapons of mass destruction and others. The FATF Recommendations are recognised as the global anti-money laundering (AML) and counter-terrorist financing (CFT) standard.

Therefore, quite a number of legislative frameworks to combat Money Laundering (ML) and Terrorist Financing (TF) have been developed in several countries around the world. Nigeria is not left out. Other countries include Canada, France, Spain, Mexico and Sweden even though their level of compliance as found out in a study by Omar, is still not comforting. It is therefore crucial for this paper to essentially address why Designated Non-Financial Businesses and Professions (DNFBPs) are important to HNWIs and consider the roles of professional bodies.

Keywords: DNFBPs, HNWIs, and PROFESSIONAL ASSOCIATIONS

Suggested Citation

Somorin, Teju, Why are Designated Non-Financial Businesses and Professions (DNFBPs) Important to High Net Worth Individuals? The Role of Professional Associations (February 21, 2018). 2nd High-Level Conference on High Net-Worth Individuals: The Challenge They Pose for Tax Administrations, FIUs and Law Enforcement Agencies, Available at SSRN: https://ssrn.com/abstract=3158743 or http://dx.doi.org/10.2139/ssrn.3158743

Teju Somorin (Contact Author)

Caleb University - College of Social and Management Sciences ( email )

Nigeria

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