A shell bank means a credit or financial institution, or an institution that carries out equivalent activities, incorporated
in a jurisdiction in which it has no physical
presence (involving meaningful mind and management), and which is
unaffiliated with a regulated financial group (Article 3(17)).
Member States must :
- prohibit credit institutions and financial institutions from entering into, or continuing, a correspondent relationship with a shell bank.
- require that those institutions take appropriate measures to ensure that they do not engage in or continue correspondent relationships with a credit institution or financial institution that is known to allow its accounts to be used by a shell bank (Article 24).