Definition: Conduit

Foreign direct investment

A conduit is an enterprise that obtains or borrows funds, often from unaffiliated enterprises, and remits those funds to its direct investor or another affiliated enterprise. Some conduits and holding companies may have a substantial physical presence as evidenced by office building, equipment, employees, etc. Others may have (little) or no physical presence and may exist only as shell companies.
Organisation for Economic Co-operation and Development (OECD), "OECD Benchmark Definition of Foreign Direct Investment, Fourth Edition 2008", Paris, 2008

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