Definition
A legally registered entity with little or no operational activity.
Context
Shell companies are frequently associated with anti-money laundering (AML), corruption, and fraud schemes, particularly for concealing beneficial ownership or facilitating fictitious transactions. They are also relevant in the context of customer due diligence (CDD) and beneficial ownership identification.
Meaning
May be used to obscure ownership structures, financial flows, or fraudulent activities and therefore represents a key risk indicator.
Example
Payments made to an entity with no real business operations.
Sources
Suggested citation
wirtschaftsforensik.ch Editorial Team: "Shell Company", in: Glossary, wirtschaftsforensik.ch, https://wirtschaftsforensik.ch/glossar/shell-company/, accessed April 18, 2026.