Shopping for Anonymous Shell Companies: An Audit Study of Anonymity and Crime in the International Financial System

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Title Shopping for Anonymous Shell Companies: An Audit Study of Anonymity and Crime in the International Financial System
Author Sharman, Jason Campbell
Journal Name Journal of Economic Perspectives
Year Published 2010
Place of publication United States
Publisher American Economic Association
Abstract The last few years have seen an international campaign to ensure that the world's financial and banking systems are "transparent," meaning that every actor and transaction within the system can be traced to a discrete, identifiable individual. I present an audit study of compliance with the prohibitions on anonymous shell companies. In particular, I describe my attempts to found anonymous corporate vehicles without proof of identity and then to establish corporate bank accounts for these vehicles. (Transactions processed through the corporate account of such a "shell company" become effectively untraceable—and thus very useful for those looking to hide criminal profits, pay or receive bribes, finance terrorists, or escape tax obligations.) I solicited offers of anonymous corporate vehicles from 54 different corporate service providers in 22 different countries, and collated the responses to determine whether the existing legal and regulatory prohibitions on anonymous corporate vehicles actually work in practice. To foreshadow the results, it seems that small island offshore centers may have standards for corporate transparency and disclosure that are higher than major OECD economies like the United States and the United Kingdom.
Peer Reviewed Yes
Published Yes
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Copyright Statement Copyright 2010 American Economics Association. The attached file is reproduced here in accordance with the copyright policy of the publisher. Please refer to the journal's website for access to the definitive, published version.
Volume 24
Issue Number 4
Page from 127
Page to 140
ISSN 0895-3309
Date Accessioned 2011-01-11
Language en_AU
Research Centre Centre for Governance and Public Policy
Faculty Griffith Business School
Subject Economics
Publication Type Journal Articles (Refereed Article)
Publication Type Code c1

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