Designated Non-Financial Businesses and Professions (DNFBPs)
DNFBPs are specific non-financial sectors, such as real estate, law, and accounting, that are subject to Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) regulations in the Cayman Islands.
[[anti-money-laundering-regulations-2025]], [[monetary-authority-act-2020]], [[proceeds-of-crime-act-2024]]
2026-05-14
Designated Non-Financial Businesses and Professions (DNFBPs) are entities that, while not traditional financial institutions, are considered at risk for money laundering or terrorist financing and are therefore included in the Cayman Islands' aml-compliance framework.
Scope of DNFBPs
Under the anti-money-laundering-regulations-2025 and the proceeds-of-crime-act-2024, the following sectors are classified as DNFBPs:
- Real Estate Agents and Brokers: When involved in transactions for clients concerning the buying and selling of real estate.
- Dealers in Precious Metals and Stones: When engaging in cash transactions above a certain threshold.
- Attorneys, Notaries, and Other Independent Legal Professionals: When providing specific corporate or financial services.
- Accountants: When performing certain financial tasks for clients.
- Trust and Company Service Providers: When providing services not already covered by other regulatory licenses.
Regulatory Framework and Supervision
DNFBPs were formally integrated into the regulatory system by Part 12A of the anti-money-laundering-regulations-2025. Unlike traditional financial institutions directly regulated by cima, DNFBPs may be overseen by designated Supervisory Authorities:
- CIMA: Acts as the supervisor for certain DNFBPs or when a specific body has not been designated.
- The Cayman Islands Institute of Professional Accountants (CIIPA): Supervises the accounting profession for AML/CFT compliance.
- The Cayman Attorneys Regulation Authority (CARA): Supervises the legal profession.
Compliance Obligations
DNFBPs are required to maintain the same rigorous standards as financial institutions, including:
- Registration: Mandatory registration with their respective Supervisory Authority.
- Customer Due Diligence (CDD): Identifying and verifying the identity of clients and beneficial owners.
- Record Keeping: Maintaining records of transactions and client identification for a minimum period.
- Reporting: Filing Suspicious Activity Reports (SARs) with the Financial Reporting Authority (FRA).
Enforcement
Failure to adhere to AML/CFT obligations subjects DNFBPs to administrative-fines or criminal prosecution. Supervisory Authorities have the power to levy fines for minor, serious, or very serious breaches (source: monetary-authority-amendment-act-2023).