ESG Season4 17th meeting
DATE: 30th Sep. 2012 10:00-12:00
PLACE: Kanda, Tokyo
MEMBERS: Ogawa
PLACE: Kanda, Tokyo
MEMBERS: Ogawa
Shell companies
A study highlights how easy it is to set up
untraceable companies
From International
Why I choose this article
One of our humans’ great inventions is corporation.
It has a corporate body and can act as a man legally. It is more convenient for
us to do business by making corporation on a paper than by individual. SHELL
company, which is today’s topic, uses this characteristic of corporation to
maximize the merit of making a corporation.
What I want to discuss
What are SHELL companies?
Why do people especially money launderers make shell companies?
Why do people especially money launderers make shell companies?
What kind of laws or systems are needed to prevent them from crimes?
What the article says
The untraceable shell companies happen to
be a vehicle of choice for dubious money launderers and terrorist financers but
law enforcers confront difficulties of taking off the veils.
International standard set by the inter-governmental
Financial Action Task Force (FATF) says countries should take all necessary
measures to prevent their misuse, such as ensuring that accurate information on
the real (or “beneficial”) owner is available to “competent authorities”.
A study of the level of compliance standard
worldwide proved that tax haven countries and poor countries had a better
compliance level than OECD countries. Providers were often strikingly
insensitive even to clear criminal risks.