The term “shell company” generally refers to an entity without a physical presence in any country and that typically has little to no business operations and few to no assets. A shell company makes it much easier to conceal the identity of the true owner which increases risk associated with AML/CFT risk. The FFIEC’s BSA/AML Manual states, …Shell companies can be used for money laundering and other crimes because they are easy and inexpensive to form and operate. In addition, ownership and transactional information can be concealed from regulatory agencies and law enforcement. Shell companies are often used in conjunction with many different types of criminal activity including various forms of trafficking.
Kevin explains more in the video.
Published 2026/08/05