FCPN Product: Shell Companies - Risks and Red Flags

Date Published: September 2026 This resource provides an overview of shell companies and the risks they present when used to facilitate money laundering, terrorist financing, proliferation financing, and other forms of financial crime. It draws on shared intelligence to explain how legal entities with little or no genuine business activity can be misused to conceal beneficial ownership, obscure control, disguise the source or destination of funds, and create the appearance of legitimate commercial activity. The resource aims to support reporting entities in identifying and responding to shell company risks through enhanced due diligence, holistic customer assessment, and timely reporting, strengthening the detection and disruption of financial crime across New Zealand’s financial system.