Commonwealth Consolidated Acts

ANTI-MONEY LAUNDERING AND COUNTER-TERRORISM FINANCING ACT 2006 - SECT 15

  (1)   For the purposes of this Act, a shell bank is a corporation that:

  (a)   is incorporated in a foreign country; and

  (b)   is authorised to carry on banking business in its country of incorporation; and

  (c)   does not have a physical presence in its country of incorporation; and

  (d)   is not an affiliate of another corporation that:

  (i)   is incorporated in a particular country; and

  (ii)   is authorised to carry on banking business in its country of incorporation; and

  (iii)   has a physical presence in its country of incorporation.

When a corporation has a physical presence in a country

  (2)   For the purposes of determining what is a shell bank, a corporation has a physical presence in a country if, and only if:

  (a)   the corporation carries on banking business at a place in that country; and

  (b)   at least one full - time employee of the corporation performs banking - related duties at that place.

When a corporation is affiliated with another corporation

  (3)   For the purposes of determining what is a shell bank, a corporation is affiliated with another corporation if, and only if:

  (a)   the corporation is a subsidiary of the other corporation; or

  (b)   at least one individual passes the control test in relation to both corporations; or

  (c)   under the regulations, both corporations are taken to be under common control.