1. Detecting Shell Companies: Protecting from BSA/AML & Fraud Risks

Detecting Shell Companies: Protecting from BSA/AML & Fraud Risks

Detecting Shell Companies: Protecting from BSA/AML & Fraud Risks
Event ID: 71629
Not for Sale
Recording: 14503

Duration: 90 minutes, including question and answer period.
Presenter(s): Gary Deutsch, CPA, president, BRT Publications, LLC
$299.00 On-Demand includes full audio presentation, question and answer session, and presentation slides.
Who Should Attend? Internal auditors, BSA officers, compliance officers, lenders, risk managers, Loan review, finance officers

According to the Financial Crimes Enforcement Network (FinCEN), money is laundered through shell companies designed to mask the owner's identity. Other types of fraud schemes also can involve shell or fictitious companies. For instance, shell companies may become a vendor to divert funds from legitimate accounts payable transactions. Or shell companies can be the conduit for bribery payments violating anti-bribery and corruption laws.

A shell corporation may appear to be legitimate since it begins with a legally created entity. However, a shell company can be setup specifically to carry out one or more fraud schemes. These companies do not have an active business, but they are typically the front for another operating company that is passing its business through the shell company. What makes detecting shell companies so difficult is the shielded identities of owners and the appearance of a functioning company. The payoff can be significant for the fraudsters, so they can invest in methods to distract investigators that aren’t well trained in spotting these schemes.

For banks and credit unions, the shell company problem creates more than money laundering deposit risk. Institutions may lend to shell companies without being aware of their fraudulent intent. States don’t help because they don’t require transparency in the company registration process. So how can institutions protect themselves? Having internal auditors trained to help investigate and identify shell companies that exist to commit fraud is one way to address this growing risk.

Please join Gary Deutsch, CPA, CIA, CBA, CMA, MBA, for this important webinar which is focused on assisting with audit methods to identify shell company red flags.


  • How shell company fraud schemes are carried out
  • Developing an audit plan to detect shell companies
  • Creating a profile of data needed to identify red flags
  • Creating a strategy to extract data from systems to use in the audit process
  • Implementing audit verification procedures to identify shell companies that pose a financial risk to the institution


    Your conference leader for “Detecting Shell Companies: Protecting from BSA/AML & Fraud Risks” is Gary Deutsch, president, BRT Publications LLC. Mr. Deutsch is a licensed CPA in Maryland and has a B.A. in accounting and an MBA in finance from Loyola University Maryland. He has also achieved the Certified Management Accountant, Certified Internal Auditor and Certified Bank Auditor designations. Mr. Deutsch is the founder and president of BRT Publications LLC.

    Mr. Deutsch has trained thousands of financial institution professionals in all aspects of risk management and has written numerous books in the U.S. and Europe on topics such as credit risk, internal audit and compliance with Generally Accepted Accounting Principles. Mr. Deutsch has extensive risk management and internal audit experience through his association with financial institutions of all sizes as well as through his role leading the KPMG financial institution consulting practice in the Mid-Atlantic region.


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