The pervasive use of shell companies, front companies, nominees, or other means to conceal the true beneficial owners of assets are contributors to illicit financing activities. While shell companies are used for legal purposes, there has been a pervasive use of shell companies for criminal activities in Liberia for an exceptionally long time, as the NCA’s May 19, 2020 article reveals. Some of the criminal uses of shell companies in Liberia include, but not limited to, the following: 1) Foreigners residing outside of Liberia set up shell companies in Liberia to channel millions of dollars through Liberia to finance terrorist activities in other countries. 2) Foreigners residing outside of Liberia set up shell companies in Liberia to channel millions of dollars of illegally acquired funds through Liberia to other destinations. Measures that could reduce and deter the criminal use of shell companies in Liberia include, but not limited to the following: a) Comprehensive investigation over the use of shell companies.

Source: Front Page Africa June 25, 2020 22:07 UTC