What is Shell Bank/Shell Entity?

11 months ago

Shell Bank/entity shall mean any bank or entity, which has no physical presence in the country in 
which it is incorporated, licensed or located, and which is not affiliated with a regulated financial 
services group that is subject to effective consolidated supervision. For the purpose of this 
clause, presence of local agent or junior level staff does not constitute physical presence. Shell 
banks/entities in themselves may not be illegal as they may have legitimate business purposes. 
However, they can also be a main component of underground activities, especially those based in 
tax havens. 

Rusma Khadka
May 23, 2023
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