Assessing the Role of Shell Companies in Money Laundering Schemes in Nigeria.
Publication Date: 28/03/2025
Author(s): Thomas Uduo (Ph.D.), Ibrahim Abdul Abubakar (Ph.D.).
Volume/Issue: Volume 8 , Issue 1 (2025)
Abstract:
The purpose of this study is to explores the role of shell companies in facilitating money laundering schemes in Nigeria, utilizing a qualitative research approach. The research examines high-profile cases, such as the Panama Papers and the Danske Bank scandal, to uncover the sophisticated methods by which shell companies are used to obscure illicit financial flows. Through in-depth case studies and expert interviews, the study reveals the operational mechanisms of these entities and the substantial challenges they pose to regulatory authorities. Key findings highlight the strategic advantages that shell companies provide to criminals, including anonymity and the ability to operate across multiple jurisdictions with varying regulatory frameworks. The study also identifies significant gaps in the current anti-money laundering (AML) measures, emphasizing the need for enhanced transparency, stricter beneficial ownership disclosure, and improved international cooperation. The research offers valuable insights for policymakers and regulators, underscoring the importance of a multi-faceted approach to combating money laundering, which includes robust regulatory frameworks, innovative detection strategies, and coordinated global efforts to protect the integrity of financial systems.
Keywords:
Shell companies, money laundering, financial crime, regulatory challenges, beneficial ownership, financial transparency, international cooperation.
