Designated Non-Financial Businesses and Professions (DNFBPs) are specific, non-banking sectors identified by the Financial Action Task Force (FATF) as high-risk for money laundering and terrorist financing. They must comply with anti-money laundering (AML) regulations due to handling high-value transactions or sensitive client data.
Designated Non-Financial Business and Professions (DNFBPs) are what we'll be talking about in this blog post. Casinos, real estate agents, accountants, dealers of precious metals, and trust service providers can be given as examples.
Real estate agents, developers, brokers. Dealers in precious metals, jewellery, gemstones, and high-value goods (e.g., vehicles, art) Trust and company service providers. Casinos, online gaming, and gambling establishments.
NBFIs are a source of consumer credit (along with licensed banks). Examples of nonbank financial institutions include insurance firms, venture capitalists, currency exchanges, some microloan organizations, and pawn shops.
An Active NFE earns a significant portion of its income from manufacturing, sales, providing services, or anything else that can be considered 'active business operations'. So, if more than half of what your business earns comes from selling goods or services, you'll usually be an active NFE.
Examples of passive non-financial entities are family trusts, investment clubs, non-profit entities that are registered not for gain, and entities that own a farm and its only income is rental income, not farming income.
An Active NFE is generally defined as an entity that:
The Top 10 NBFCs in India 2025
There are many NBFCs. Investment banks, mortgage lenders, money market funds, insurance companies, hedge funds, private equity funds, and P2P lenders are all examples of NBFCs.
LIC Housing Finance, a distinguished non-banking financial company (NBFC), provides home loans catering to both salaried and self-employed individuals across the country.
According to the Financial Action Task Force (FATF), DNFBPs consist of a wide range of sectors (casinos, lawyers, notaries, and other independent legal practitioners and accountants, trust and company service providers (TCSPs), real estate agents, dealers in precious metals, and dealers in precious stones (DPMS).
The PRA and the FCA are separate entities, although they do work closely on certain issues/firms. While the PRA's job is to make sure firms are stable and resilient, the FCA works with them to make sure they treat customers fairly. One of its responsibilities is ensuring fair practice in consumer credit.
The Reserve Bank has been empowered under the RBI Act 1934 to register, determine policy, issue directions, inspect, regulate, supervise and exercise surveillance over NBFCs that fulfil the principal business criteria or 50-50 criteria of principal business.
Designated Financial Institutions means the financial institutions whose internet banking facilities are accessible from time to time by the Merchant's customer to initiate a payment Transaction to the Merchant from the Website using the POLi™ System.
Nondepository institutions include insurance companies, pension funds, brokerage firms, and finance companies.
The Money Laundering (Prohibition) Act, 2011, defines Designated Non-Financial Institution (DNFIs) as dealers in Jewelry, Luxury Goods, Chartered Accountants, Audit Firms, Tax Consultants, Clearing And Settlement Companies, Legal Practitioners, Hotels, Casinos, Supermarkets, or such other businesses as the Federal ...
Non-Financial Institution means an entity other than a Financial Institution. Entities that are not financial institutions can be classified as Active NFE or Passive NFE. Non-Financial Foreign Entity (FATCA only) means an entity that is a non-US entity that is not treated as a Financial Institution. Page 3.
What is the major difference between a bank and an NBFC? The main difference is that banks are regulated by the RBI and can accept deposits, while NBFCs are not allowed to accept deposits and have more flexible lending criteria.
The RBI has barred four non-banking finance companies (NBFCs) — Asirvad Micro Finance Ltd, Arohan Financial Services Ltd, DMI Finance, and Navi Finserv — from sanctioning and disbursing loans.
What is the highest salary offered who know NBFC? Highest reported salary offered who know NBFC is ₹50.0lakhs. The top 10% of employees earn more than ₹30.8lakhs per year. The top 1% earn more than a whopping ₹50.0lakhs per year.
There are two types of NFEs:
FI generally includes banks, security dealing companies, investment management services, insurance companies, fund managers, trusts & trustees. An Active NFE generally refers to an entity that operates an active trade or business with <50% passive income (gross) or have <50% assets that produce passive income*.
NONBANK FINANCIAL INTERMEDIARIES (henceforth in this paper referred to as NFI) have grown and continue to grow in importance in many countries of the world.