Specified Non-Financial Business and Profession Transactions Regulation

Issued by the Executive Council in accordance with the relevant Financial Intelligence Law and Regulatory Framework.

Preamble

Whereas the need arises to regulate transactions conducted by specified non-financial businesses and professions; And whereas it is necessary to establish a risk-based framework for customer due diligence, record keeping, and suspicious transaction reporting; And whereas the competent authority is empowered to designate supervisory bodies and impose compliance obligations; Now, therefore, the Executive Council hereby issues this Executive Regulation.

Article 1: Definitions

In this Regulation, unless the context otherwise requires:

• "Authority" means the Financial Intelligence Unit or designated regulatory body.
• "Customer Due Diligence (CDD)" means the process of identifying and verifying the identity of customers and beneficial owners.
• "Enhanced Due Diligence (EDD)" means additional measures applied to higher-risk customers, transactions, or business relationships.
• "Designated Non-Financial Business and Profession (DNFBP)" means lawyers, notaries, real estate agents, dealers in precious metals and stones, and high-value goods traders.
• "Suspicious Transaction Report (STR)" means a report submitted to the Authority regarding transactions that may involve money laundering or terrorist financing.
• "Beneficial Owner" means the natural person(s) who ultimately owns or controls a legal entity or arrangement.

Article 2: Scope and Application

This Regulation applies to all specified non-financial businesses and professions conducting transactions as defined herein. It covers domestic and cross-border activities, including the establishment of business relationships, occasional transactions exceeding prescribed thresholds, and the appointment of compliance officers.

Article 3: Core Obligations

1. Customer Due Diligence: Designated entities must identify and verify the identity of their customers and beneficial owners before establishing a business relationship or executing occasional transactions.
2. Enhanced Due Diligence: Higher-risk customers, including politically exposed persons (PEPs) and complex legal arrangements, require enhanced verification measures.
3. Record Keeping: All relevant documents, records, and transaction data must be retained for a minimum period of five (5) years from the date of the transaction or the end of the business relationship.
4. Compliance Officer: Each designated entity must appoint a qualified compliance officer responsible for implementing internal controls, training staff, and liaising with the Authority.

Article 4: Reporting and Supervision

1. Suspicious Transaction Reports: Entities must promptly submit STRs to the Authority upon detecting transactions that lack economic purpose or involve suspicious funds.
2. Supervisory Oversight: Designated supervisory bodies are responsible for monitoring compliance, conducting inspections, and issuing guidance to designated entities.
3. Training and Internal Controls: Entities must implement robust internal policies, procedures, and controls, including continuous staff training on AML/CFT obligations.

Article 5: Penalties and Enforcement

Failure to comply with the provisions of this Regulation may result in administrative, civil, or criminal penalties, including fines, suspension of licenses, and public disclosure of violations. The Authority is empowered to impose corrective measures and enforce compliance through designated enforcement mechanisms.

Article 6: Transitional Provisions and Effective Date

This Regulation shall come into force on the date of its publication in the Official Gazette. Existing designated entities must align their internal policies and record-keeping systems within twelve (12) months of the effective date. Provisions regarding cross-border transactions and beneficial ownership registers shall apply immediately upon issuance.

Annex: Designated Activities and Thresholds

• Real estate transactions exceeding prescribed monetary thresholds.
• Dealers in precious metals and stones conducting cash transactions above statutory limits.
• Lawyers, notaries, and accountants acting in financial or real estate transactions.
• High-value goods traders handling cash payments above the regulatory threshold.

Issued under the seal of the Executive Council on [Date]. (Regulatory Reference: SNFBP-2024/EN)