AML/CFTR 1.3.8 What is a shell bank?

(1) A shell bank is a bank that:
(a) has no physical presence in the jurisdiction in which it is incorporated and licensed (however described); and
(b) is not affiliated with a regulated financial services group that is subject to effective consolidated supervision.
(2) For this rule, physical presence in a jurisdiction is a presence involving effective management that has the authority to make decisions, and not merely the presence of a local agent or low-level staff.
Derived by QFCRA RM/2019-8 (as from 1st February 2020)