#QuickBiteCompliance Day 148
The Secret Companies That Hide Dirty Money: International Business Companies (IBCs)
Imagine if you could create a company in another country within minutes, keep your name hidden, pay little to no taxes, and never have to report what you do. Sounds too good to be true? It’s real—and it’s called an International Business Company (IBC).
IBCs are offshore companies set up in places with strong secrecy laws. While they can be used legally for global trade, criminals love them because they offer anonymity and minimal oversight. Here’s how bad actors exploit them:
💼 Shell Companies – A criminal sets up an IBC with no real business, just to move money around and hide its origins.
🏦 Money Laundering – Dirty money is transferred into an IBC’s bank account, mixed with other funds, and then sent elsewhere looking “clean.”
🚨 Sanctions Evasion – Bad actors use IBCs to secretly do business with sanctioned countries or individuals.
💰 Tax Evasion & Fraud – Some people use IBCs to hide wealth from tax authorities or commit fraud.
With thousands of IBCs created every year, spotting the bad ones is tough—but not impossible. Regtech solutions and Open Source AML tools, like Mulai Console, help detect suspicious offshore companies and stop financial crime before it spreads.
💡 Transparency matters. If money has nothing to hide, why should companies?
🔗 Source: ACAMS AML Glossary
#AML #FinancialCrime #OffshoreBanking #Transparency #Regtech #InclusiveRegtech #OpenSourceAML #100HariNulis
