#QuickBiteCompliance Day 32
💡 What Are Bearer Shares? And Why Do They Matter in Financial Crime 💡
Let’s talk about something called bearer shares. Imagine a “secret ticket” that you own simply by holding it in your hands. It doesn’t have your name or anyone else’s on it, just the words “To Bearer.” Whoever has this ticket (or “certificate”) owns it, no questions asked! 🤫
These certificates represent ownership in a company, just like owning part of a company when you have shares in it. But there’s a catch! If you lose this certificate, someone else can pick it up and become the new owner without anyone needing to sign or approve it. And if that sounds a little fishy…well, you’re onto something! 🐟
Why Do Bad Guys Love Bearer Shares?
👉 Bearer shares make it easier for criminals to hide who really owns a company. No name on the paper means no trail! This makes it a perfect tool for:
1. Money Laundering: Crooks move dirty money through “clean” businesses. If the ownership is hidden by bearer shares, no one can prove who’s in charge.
2. Tax Evasion: By keeping their identity hidden, people can avoid paying taxes in their own country because it’s hard to link them to the profits.
3. Funding Illegal Activities: Want to hide where illegal money is going? Transfer a bearer share to someone, and they instantly “own” the company without a trace.
So, What Can Be Done?
Countries worldwide are making bearer shares harder to use, with more rules and even banning them. But knowing how these things work helps everyone keep an eye out for suspicious activity.
Let’s stay informed and make it tougher for the bad guys to get away with hiding money! 💼🌍 #FinancialCrimeAwareness #AntiMoneyLaundering #AML
#InclusiveRegtech #OpenSourceAML #BearerShares
Source: https://www.acams.org/en/resources/aml-glossary-of-terms
