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Tax Evasion

Tax Haven Transfers

Regular or significant transfers to jurisdictions known for banking secrecy and low tax transparency, particularly where the customer's business model does not justify international financial relationships in those locations.

Firm typesE-Money Institution (EMI)Payment Institution (PI)Bank / Credit InstitutionWealth ManagerNeobank / Digital Bank
ProductsCross-Border PaymentsFX TransfersE-Money AccountsTrade Finance
CustomersIndividualsSMEsCorporatesHigh Net Worth Individuals
Key terms:

What it is

Regular or significant transfers to jurisdictions known for banking secrecy and low tax transparency, particularly where the customer's business model does not justify international financial relationships in those locations.

Control objective

Identify transfers to tax haven jurisdictions that are inconsistent with the customer's declared business activity and may indicate tax evasion or proceeds concealment.

Data required

  • Transaction destination country and institution
  • OECD tax transparency ratings
  • EU list of non-cooperative jurisdictions
  • Customer declared business geographies
  • Beneficial ownership structure
  • Source of wealth documentation
  • Transaction purpose stated by customer
  • Corporate structure and subsidiary locations

Related typologies (Tax Evasion)

Offshore Trust Layering via Professional Enablers

Wealthy individuals use networks of professional enablers including lawyers, accountants and trust administrators to establish multi-jurisdictional trust and corporate structures that conceal beneficial ownership of income-generating assets, disguise the true origin of wealth, and facilitate the evasion of tax obligations. Funds move through nominee trustees, opaque holding vehicles and secrecy-jurisdiction accounts before distribution to the ultimate beneficiary.

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