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Detecting Shell Companies: Protecting from BSA/AML & Fraud Risks
Gary Deutsch

Learn audit methods to identify shell company red flags.

Price: $299.00


This is a virtual event, accessible online and over the phone. Access instructions will be provided after registration.
Detecting Shell Companies

According to the Financial Crimes Enforcement Network (FinCEN), money is laundered through shell companies designed to mask the owner's identity. Other types of fraud schemes also can involve shell or fictitious companies. For instance, shell companies may become a vendor to divert funds from legitimate accounts payable transactions. Or shell companies can be the conduit for bribery payments violating anti-bribery and corruption laws.

A shell corporation may appear to be legitimate since it begins with a legally created entity. However, a shell company can be setup specifically to carry out one or more fraud schemes. These companies do not have an active business, but they are typically the front for another operating company that is passing its business through the shell company. What makes detecting shell companies so difficult is the shielded identities of owners and the appearance of a functioning company. The payoff can be significant for the fraudsters, so they can invest in methods to distract investigators that aren’t well trained in spotting these schemes.

For banks and credit unions, the shell company problem creates more than money laundering deposit risk. Institutions may lend to shell companies without being aware of their fraudulent intent. States don’t help because they don’t require transparency in the company registration process. So how can institutions protect themselves? Having internal auditors trained to help investigate and identify shell companies that exist to commit fraud is one way to address this growing risk.

Please join Gary Deutsch, CPA, CIA, CBA, CMA, MBA, for this important webinar which is focused on assisting with audit methods to identify shell company red flags.


  • How shell company fraud schemes are carried out
  • Developing an audit plan to detect shell companies
  • Creating a profile of data needed to identify red flags
  • Creating a strategy to extract data from systems to use in the audit process
  • Implementing audit verification procedures to identify shell companies that pose a financial risk to the institution
Price: $299.00



Gary Deutsch


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