A shell corporation is a type of company or corporation that doesn't have substantial assets or operations. It's essentially a business that exists purely on paper.
These types of corporations are often created to raise capital before actual business activities begin.
How shell corporations are used in money laundering
💸 Money launderers deposit significant amounts of money to an account belonging to a shell company
💸 The funds are then moved to money launderers' personal accounts, supported by fictitious invoices, thus cleaning the money's origin.
💸 Sometimes, money is laundered through the purchase of assets such as real estate, art, collectibles, and luxury goods.
Top signs a shell company is money laundering
💥 Difficulty getting information about the individuals or entities that initiated or received a transaction or transfer
💥 Payments that have no clear or stated purpose or that do not involve any discernible goods or services
💥 Transactions that involve two separate companies registered to the same address or companies that provide only the address of their registered agent
💥 A single company sends wire transfers to an unusually large number of beneficiaries
💥 Transactions that frequently involve beneficiaries in high-risk jurisdictions or off-shore financial destinations
Take action now and request a demo.
