The Panama Papers: Hackers Reveal Law Firm's Many Tax Haven Clients

[danjuno]

A huge leak of confidential documents has revealed how the rich and powerful use tax havens to hide their wealth.

Eleven million documents were leaked from one of the world's most secretive companies, Panamanian law firm Mossack Fonseca.

They show how Mossack Fonseca has helped clients launder money, dodge sanctions and evade tax.

The company says it has operated beyond reproach for 40 years and has never been charged with criminal wrong-doing.

The documents show links to 72 current or former heads of state in the data, including dictators accused of looting their own countries.

Gerard Ryle, director of the ICIJ, said the documents covered the day-to-day business at Mossack Fonseca over the past 40 years.

"I think the leak will prove to be probably the biggest blow the offshore world has ever taken because of the extent of the documents," he said.
Panama Papers - tax havens of the rich and powerful exposed

Eleven million documents held by the Panama-based law firm Mossack Fonseca have been passed to German newspaper Suddeutsche Zeitung, which then shared them with the International Consortium of Investigative Journalists. BBC Panorama is among 107 media organisations in 78 countries which have been analysing the documents. The BBC doesn't know the identity of the source
They show how the company has helped clients launder money, dodge sanctions and evade tax
Mossack Fonseca says it has operated beyond reproach for 40 years and never been accused or charged with criminal wrong-doing
Panama Papers: Full coverage; follow reaction on Twitter using #PanamaPapers; in the BBC News app, follow the tag "Panama Papers"
Watch Panorama at 19:30 on BBC One on Monday, 4 April, or catch up later on the BBC iPlayer (UK viewers only)

The data contains secret offshore companies linked to the families and associates of Egypt's former president Hosni Mubarak, Libya's former leader Muammar Gaddafi and Syria's president Bashar al-Assad.
Russian connection

It also reveals a suspected billion-dollar money laundering ring that was run by a Russian bank and involved close associates of President Putin.

The operation was run by Bank Rossiya, which is subject to US and EU sanctions following Russia's annexation of Crimea.

The documents reveal for the first time how the bank operates.
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Media captionA huge leak of confidential documents has revealed how the rich and powerful use tax havens to hide their wealth.

Money has been channelled through offshore companies, two of which were officially owned by one of the Russian president's closest friends.

Concert cellist Sergei Roldugin has known Vladimir Putin since they were teenagers and is godfather to the president's daughter Maria.

On paper, Mr Roldugin has personally made hundreds of millions of dollars in profits from suspicious deals.

But documents from Mr Roldugin's companies state that: "The company is a corporate screen established principally to protect the identity and confidentiality of the ultimate beneficial owner of the company."

Read more: Putin associates linked to 'money laundering'
Iceland connection

Mossack Fonseca data also shows how Icelandic Prime Minister Sigmundur Gunnlaugsson had an undeclared interest in his country's bailed-out banks.

Mr Gunnlaugsson has been accused of hiding millions of dollars of investments in his country's banks behind a secretive offshore company.

Leaked documents show that Sigmundur Gunnlaugsson and his wife bought offshore company Wintris in 2007.

He did not declare an interest in the company when entering parliament in 2009. He sold his 50% of Wintris to his wife for $1 (70p), eight months later.

Mr Gunnlaugsson is now facing calls for his resignation. He says he has not broken any rules, and his wife did not benefit financially from his decisions.

The offshore company was used to invest millions of dollars of inherited money, according to a document signed by Mr Gunnlaugsson's wife Anna Sigurlaug Pálsdóttir in 2015.

Read more: Iceland PM's investments questioned
'Beyond reproach'

In addition, Mossack Fonseca supplied a front man who pretended to own $1.8m, so the real owner could get the cash from the bank without revealing their identity.

Mossack Fonseca says it has always complied with international protocols to ensure the companies they incorporate are not used for tax evasion, money-laundering, terrorist finance or other illicit purposes.

The company says it conducts thorough due diligence and regrets any misuse of its services.

"For 40 years Mossack Fonseca has operated beyond reproach in our home country and in other jurisdictions where we have operations. Our firm has never been accused or charged in connection with criminal wrongdoing.

"If we detect suspicious activity or misconduct, we are quick to report it to the authorities. Similarly, when authorities approach us with evidence of possible misconduct, we always cooperate fully with them."

Mossack Fonseca says offshore companies are available worldwide and are used for a variety of legitimate purposes.

http://www.bbc.com/news/world-35918844

Most of it is confirming what we already know, but this is definitely worth looking at.

Iceland's PM is about to have a bad time.

 

[Godwynn]

Here's a map of public officials implicated in the leaks.

Classic Latin America.

 

[danjuno]

A lot of big powers in Europe also implicated. Yikes.

 

[Birdjaguar]

Well let's hope that this gets some results.

 

[danjuno]

Look's like folks are already calling for a snap election in Iceland.

David Cameron's dad was also a client, but he died shortly after Cameron took office. I wonder where the money went?

 

[gay_Aleks]

Damnit, Bulgaria's too poor to hide their money in Panama.

 

[Synobun]

Check out the video in this article from The Guardian about the Icelandic PM. They surprised him with questions about the whole fiasco and you can see his composure break and the panic set in.

I have to give kudos for the cooperative approach being enacted here. It's much tougher for governments to target a whistleblower if there are multiple organizations across the globe acting in tandem to reveal confidential information. Interested in seeing what happens with this. It may pave the way for some big changes in the future.

 

[danjuno]

Hopefully a group does something similar with the companies here to expose outsourcing and corruption to the same extent. The US media seems rather slow to react to this since the most famous American involved is Jackie Chan.

And yes, the Icelandic PM looks like a deer caught in headlights.

 

[CivCube]

There's gotta be more Americans involved.

 

[Synobun]

There's gotta be more Americans involved.

Probably not in this specific scheme. America is a whole beast of its own magnitude and major players likely have their own system in place for naughty business.

 

[danjuno]

That'd be my guess. Though the map Godwynn posted poses a problem. How can the naughty business of American companies be held in a completely different system? How can a majority of countries in existence have been connected to this in some form or another and not the USA?

 

[Synobun]

That'd be my guess. Though the map Godwynn posted poses a problem. How can the naughty business of American companies be held in a completely different system? How can a majority of countries in existence have been connected to this in some form or another and not the USA?

Someone far more intelligent than me would need to answer that. My assumption would simply be that the top executives in the US made their own little shindig long ago and then it trickled down. No reason to be involved with another scheme if the isolated one you've got going on is of similar if not better "merit". I would imagine that the US alone would challenge all of these countries in terms of money covered up and transferred.

 

[ls612]

There's gotta be more Americans involved.

American tax law is different from most of the rest of the world. Income is taxed for Americans by the US regardless of where it is earned. That is probably why this scheme didn't have Americans in it.

 

[CivCube]

Now reports are coming in that American officials might be added to the list...

 

[Zkribbler]

Remember, these leaked papers come from only one law firm, a large one admittedly, but only one.

I'm sure America's elites are up to their top hats in similar schemes.

 

[El_Machinae]

Watch the Xi story in China. He's recently become one of the most powerful people there, charged with anti-corruption. But he's almost Stalinesque with how much power he weilds. This could change a lot there

 

[CivCube]

Noooooo! Not Aishwarya Rai!

http://indianexpress.com/article/in...ngh-aishwarya-rai-iqbal-mirchi-adani-brother/

 

[Zelig]

There's gotta be more Americans involved.

Probably not in this specific scheme. America is a whole beast of its own magnitude and major players likely have their own system in place for naughty business.

Yeah, no Canada on the map either, but the wealthy here can just get major global accounting firms to aid them in evading taxes rather than going with secretive Panamanian companies: http://www.cbc.ca/news/business/kpm...-25-wealthy-canadians-document-says-1.3249468

 

[Cheetah]

This is just the start. There's gonna be regular new stories coming out over the next fourteen days. the US and Canada (and hopefully Norway please) are sure to be represented as well.

Just give it a bit of time. There's a lot to go through, and releasing everything at once would just make the stories drown out each other.

The Norwegian banks who has facilitated this for Norwegians are falling over themselves to denounce the practice and claiming that (1) management knew NOTHING!! and (2) in any case, it's in the past and not being done anymore...

 

[CavLancer]

Americans are ethically pure, this confirms it.