Difference In AML: DNFBPs Vs Financial Sector

Designated Non-Financial Businesses and Professions (DNFBPs)—such as real estate agencies, law firms, and precious metals dealers—face in combating money laundering. Unlike banks, which often use AML compliance as a selling point, DNFBPs deal with a wide range of transaction types and have smaller, more varied client bases, making one-size-fits-all AML strategies less effective.

The panel highlighted the need for tailored compliance tools for these sectors. For instance, a FATF report has shown that DNFBPs, especially in developed economies, are increasingly exploited by money launderers who take advantage of gaps in regulatory coverage and sector-specific risks. Real estate and high-value goods, for example, are often involved in cross-border transactions or high-value cash deals, which present unique risks that standardized AML tools aren’t well-equipped to catch.

For smaller DNFBPs with limited resources, experts emphasized the potential of AI-driven solutions and RegTech to manage compliance without adding heavy operational burdens. Studies have shown that these technologies can automate much of the monitoring and help identify high-risk transactions more accurately, which makes compliance achievable even for firms without large compliance teams. By investing in these tools, DNFBPs can keep up with growing AML expectations, better align with international standards, and address the specific vulnerabilities within their sectors.

Speakers:

Oonagh van den Berg | Event Host – AML Watcher | Founder of RAW Compliance 

Adam McLaughlin | Director, Global Head of Financial Crime Strategy & AML SME at NICE Actimize 

Kevin Newe | Assistant Director, Illicit Finance Threat Lead at HM Revenue & Customs 

Gareth Dothie | Head of Fraud Operations at the City of London Police