Certain corporate structuresobscure beneficial ownership, making themattractive for money laundering.
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.
Why Other Options Are Incorrect:
Option B (Incorrect):A private company that does not operate in a tax haven presents lower ML risk.
Option D (Incorrect):A foreign LLC is not necessarily high-risk unless linked to a secrecy jurisdiction.
Best Practices for Identifying High-Risk Corporate Structures:
Require full disclosure of beneficial ownership.
Apply enhanced due diligence (EDD) on tax-haven entities.
Monitor for unusual cross-border transactions.
[Reference:, FATF Recommendation 24 (Beneficial Ownership Transparency), 6th EU AML Directive (6AMLD) on Corporate Transparency, OECD Guidance on Tax Haven Risks & Shell Companies, , , , ]
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