However they pose higher risks from a compliance standpoint:
Shell Companies could be used to conceal the identity of ultimate beneficial owners. Therefore, it can inter alia, be used as part of an AML and/or tax evasion scheme.
Shelf companies can make their purchaser appear to have admirable business attributes such as stability, legitimacy and a great credit score. Buying a shelf company can allow fraudulent business to mislead customers.
#compliance #amlcompliance #aml