The Misuse of Corporate Vehicles, Including Trust and Company Service Providers

The Misuse of Corporate Vehicles, Including Trust and Company Service Providers

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The FATF has conducted an examination of the ways in which Corporate Vehicles (legal entities, including corporations, trusts, foundations and partnerships with limited liability) can be exploited for money laundering or terrorist financing purposes. The study of corporate vehicles found evidence of their misuse for money laundering / terrorist financing. The report identifies a number of risk factors and concludes that this misuse could be significantly reduced if governments have access to information about the beneficial owner, the source of assets, and the business objective of the company or trust.

This report is one in a series of thematic studies carried out by the FATF to provide an in-depth look at money laundering and terrorist financing typologies.