Moving forward, I will be sharing some definitions related to Compliance matters. I started with the PEPs, due to the fact that lately, rumors spread around the fact that Chairmen of banks are considered as PEPs. #compliance#pep#politicallyexposedpersons
Anti-money laundering program: This system is designed to assist institutions in their fight against money laundering and terrorist financing. In many jurisdictions, government regulations require financial institutions, including banks, securities dealers and money services businesses, to establish such programs.
Shell and Shelf companies are both accepted legally, as long as they are used for legitimate purposes. 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.
