Shell corporations, companies with no physical presence, are especially vulnerable to money laundering because they "lack transparency" and are used to hide the real beneficiaries of potentially illicit funds, according to a November advisory by the U.S. Financial Crimes Enforcement Network. However, some states have tools that can help institutions determine whether they are dealing with a suspicious company. Boston Public Library's State Corporations Databases lists state incorporation databases which have information about companies registered there. Although states do not always make the same information public, it's a good starting point to conduct due diligence on corporate customers. Alabama's registered...
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