Shell company indicator check
The Shell company indicator check uses Moody's Shell Company Indicator to identify hidden shell company risks through analysis-driven indicators. The check uncovers potential suspicious corporate behaviors that necessitate further scrutiny, as these actions may signal money laundering, tax evasion, fraud, and connections to criminal networks.
Information used to run this check
To run the check, complete all the required fields in the company profile. The Company number field must be filled out to generate the BvD ID.
The Shell company indicator check evaluates the risk and does not provide a score, unlike many other checks. Instead, the check gives a pass or fail result depending on how the indicators were met. In addition to the overall result, each indicator is given a risk level:
Green: No shell company risk was detected.
Red: Shell company risk was detected. Indicators are red if at least one sub-indicator has flagged data that exceeds a pre-defined threshold, even if data is missing from other sub-indicators.
Blue: Data was inconclusive to determine shell company risk. The directorships indicator is blue when one or more sub-indicators do not have enough data available for Moody's to determine if a pre-defined threshold was exceeded, even if other sub-indicators are green.
Each indicator can be accessed for further details using an button associated with them.
The detailed view is divided into Overview and Threshold data. The Overview tab contains detailed information about how the indicator result was formed. The Threshold data tab is only shown in Directorships, Mass registration, Age of key individuals, and Financial anomalies indicators where the risk is detected using this method.
The seven indicators and their sub-indicators in detail:
Indicator / Purpose | Sub-indicator | Risk detected by |
|---|---|---|
Directorships |
| Threshold exceeded |
Mass registration |
| Threshold exceeded |
Circular ownership |
| Condition met |
Jurisdictional risk disparity | For each typology, one of these must be in a higher risk jurisdiction, based on the EU list of non-cooperative jurisdictions for tax purposes and the FATF black and grey lists.
| Condition met |
Age of key individuals |
| Threshold exceeded |
Dormancy history | Active companies that have been dormant for at least five years before changing to an active status. | Condition met |
Financial anomalies | Exceptionally high operating revenue divided by number of employees ratio. | Threshold exceeded |