shell companies
Empty business entities
Shell companies are businesses that exist primarily on paper, with no significant assets, operations, or employees.
They serve as legal structures for financial transactions—sometimes legitimately, as when holding assets or facilitating mergers, but often to obscure ownership, evade taxes, or launder money: The investigation traced the payments through a maze of shell companies in the Caymans.
Unknown identity state
- secrecyPractice of hiding information
- opacityImpermeability to light
- beneficial ownershipWho truly holds assets
- hidden assetsUnreported valuable possessions
layering · nominee · privacy · untraceable · disguise · clandestine · undisclosed · obfuscation
Disguising criminal proceeds' origins
- tax evasionIllegally avoiding government dues
- fraudIntentional criminal trickery
- sanctions evasionAvoiding imposed trade restrictions
- embezzlementFraudulent taking of entrusted assets
bribery · corruption · kickbacks · illicit funds · OFAC · due diligence · suspicious activity · red flags
Legal separation of entity from owners
- piercingPenetrating or very sharp
- alter egoA secondary persona
- undercapitalizationInsufficient business funding level
- co-minglingBlending of separate things
liability shield · asset protection · estate planning · joint venture
Zero-rate wealth jurisdiction
- Panama PapersExposed secret shell companies
- Cayman IslandsCaribbean British overseas territory
- British Virgin IslandsUK overseas Caribbean territory
- DelawareFirst to join the Union
Bermuda · Bahamas · Nevis · Belize · Jersey · Guernsey · Isle of Man · Luxembourg
Forming a legal entity
- subsidiaryOf lesser importance
- LLCHybrid business entity abbreviation
- corporationLegally separate business entity
- entityIndependent existing thing
registered agent · corporate structure · layering · nesting · brass plate · conduit · intermediary
anonymity
Unknown identity state
- secrecyPractice of hiding information
- opacityImpermeability to light
- beneficial ownershipWho truly holds assets
hidden assets · layering · nominee · privacy · untraceable · disguise · clandestine · undisclosed · obfuscation · fictitious
money laundering
Disguising criminal proceeds' origins
- tax evasionIllegally avoiding government dues
- fraudIntentional criminal trickery
- sanctions evasionAvoiding imposed trade restrictions
embezzlement · bribery · corruption · kickbacks · illicit funds · OFAC · due diligence · suspicious activity · red flags
corporate veil
Legal separation of entity from owners
- piercingPenetrating or very sharp
- alter egoA secondary persona
- undercapitalizationInsufficient business funding level
co-mingling · liability shield · asset protection · estate planning · joint venture
tax haven
Zero-rate wealth jurisdiction
- Panama PapersExposed secret shell companies
- Cayman IslandsCaribbean British overseas territory
- British Virgin IslandsUK overseas Caribbean territory
Delaware · Bermuda · Bahamas · Nevis · Belize · Jersey · Guernsey · Isle of Man · Luxembourg · Liechtenstein
incorporation
Forming a legal entity
- subsidiaryOf lesser importance
- LLCHybrid business entity abbreviation
- corporationLegally separate business entity
entity · registered agent · corporate structure · layering · nesting · brass plate · conduit · intermediary
- fraudscam, fraud, swindle, con, deceive
- corporate crimescorporate fraud, securities fraud, insider trading, price fixing, embezzlement
- embezzlementpeculation, defalcation, misuse of funds, misappropriation, siphoning
- financial fraudsecurities fraud, bank fraud, accounting fraud, defalcation, embezzler
- tax crimestax fraud, tax evasion, undeclared income, unreported income, hidden income
- Tax Havenstax havens, offshore accounts, tax avoidance, tax shelters, offshore trusts