Shell Corporations


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

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