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. Certain corporate structures obscure beneficial ownership, making them attractive for money Option A (Correct): Nominee shareholders and directors conceal the true owners of a company, increasing AML risk. Option C (Correct): Bearer shares allow ownership to be transferred…

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 that has no activity in a tax haven jurisdiction.
CA company with bearer shares incorporated in a tax haven jurisdiction.
DA limited liability company incorporated in a foreign jurisdiction.
EA private investment company incorporated in a tax haven jurisdiction with strict secrecy laws.

How the community answered

(23 responses)

A
70% (16)
B
17% (4)
D
13% (3)

Explanation

Certain corporate structures obscure beneficial ownership, making them attractive for money Option A (Correct): Nominee shareholders and directors conceal the true owners of a company, increasing AML risk. Option C (Correct): Bearer shares allow ownership to be transferred anonymously, making it difficult to trace transactions. Option E (Correct): Private investment companies in tax havens with strict secrecy laws enable illicit fund movements.

Topics

#beneficial ownership#bearer shares#tax haven#nominee shareholders

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