Which of the following corporate structures present a higher money laundering risk due to reduced transparency? (Select Three.)

The correct answer is A. A company with nominee shareholders and directors in a local jurisdiction. C. A company with bearer shares incorporated in a tax haven jurisdiction. E. A private investment company incorporated in a tax haven jurisdiction with strict secrecy laws. Money launderers exploit corporate structures that offer anonymity and reduced transparency. Option A (Correct): Nominee shareholders and directors can be used to hide true beneficial Option C (Correct): Bearer shares allow ownership to transfer anonymously, a major AML risk…

Risks and Methods of Money Laundering and Terrorist Financing

Question

Options

AA company with nominee shareholders and directors in a local jurisdiction.
BA private company with no activity in a tax haven jurisdiction.
CA company with bearer shares incorporated in a tax haven jurisdiction.
DA limited liability company (LLC) incorporated in a foreign jurisdiction.
EA private investment company incorporated in a tax haven jurisdiction with strict secrecy laws.

How the community answered

(37 responses)

A
73% (27)
B
19% (7)
D
8% (3)

Explanation

Money launderers exploit corporate structures that offer anonymity and reduced transparency. Option A (Correct): Nominee shareholders and directors can be used to hide true beneficial Option C (Correct): Bearer shares allow ownership to transfer anonymously, a major AML risk. Option E (Correct): Tax haven companies with secrecy laws are frequently used for money

Topics

#corporate transparency#bearer shares#nominee shareholders#tax havens

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