Which three criteria does a shell bank meet according to the Wolfsberg Principles on Correspondent Banking? Choose 3 answers.

The correct answer is A. It does not conduct business at a fixed address in a jurisdiction in which it is authorized to conduct B. It does not employ one or more individuals at its fixed address where it is authorized to conduct D. It is not subject to inspection by the banking authority that licensed it to conduct banking activities. According to the Wolfsberg Financial Crime Principles for Correspondent Banking, a shell bank is defined as a bank that has no physical presence in the jurisdiction in which it is incorporated and licensed, and which is unaffiliated with a regulated financial group that is…

Compliance Standards (International AML/CFT Standards and the role of FATF)

Question

Options

AIt does not conduct business at a fixed address in a jurisdiction in which it is authorized to conduct
BIt does not employ one or more individuals at its fixed address where it is authorized to conduct
CIt is not subject to AML laws that require it to implement an AML program
DIt is not subject to inspection by the banking authority that licensed it to conduct banking activities

How the community answered

(43 responses)

A
74% (32)
C
26% (11)

Explanation

According to the Wolfsberg Financial Crime Principles for Correspondent Banking, a shell bank is defined as a bank that has no physical presence in the jurisdiction in which it is incorporated and licensed, and which is unaffiliated with a regulated financial group that is subject to effective consolidated supervision. Physical presence means meaningful mind and management located within a country. The existence simply of a local agent or low level staff does not constitute physical presence.

Topics

#shell banks#Wolfsberg Principles#correspondent banking#bank definition

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