Commonwealth Numbered Acts Commonwealth Numbered Acts(1) For the purposes of this Act, 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 passes the control test in relation to both corporations; or
(c) under the regulations, both corporations are taken to be under common control.