94AShell banks

94A Shell banks

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