April 3, 2016
5 things to know about the Panama Papers
By Mike Murphy
Marketwatch.com
A massive data leak of files from Panama-based law firm Mossack Fonseca went online Sunday, in a collaboration by the German newspaper Suddeutsche Zeitung and the International Consortium of Investigative Journalists, exposing how the world’s ultra-rich manage their offshore accounts.
1. What is Mossack Fonseca?
The Panamanian law firm has offices worldwide, reportedly with 600 employees in 42 countries, and specializes in offshore financial services. Among other tax havens, Mossack operates in Switzerland, Cyprus and the British Virgin Islands. The firm has reportedly acted for more than 300,000 companies, more than half of which are based in British-administered tax havens, such as Guernsey, the Isle of Man and the U.K. The 40-year-old company has denied wrongdoing.
2. What was leaked?
More than 11.5 million files, an unauthorized data dump larger than 2010’s WikiLeaks release of U.S. diplomatic messages and 2013’s secret spying revelations from Edward Snowden. In some cases, the documents are said to show how the firm facilitates tax evasion and money laundering. References to bribery, corruption, violating business sanctions and criminal enterprises are mentioned in the files.
3. Who should be worried?
The world’s “1 percenters.” The BBC reported 72 current and former heads of state are linked to the firm, including Russian President Vladimir Putin, as well as celebrities and other public officials. Iceland’s Prime Minister Sigmundur Davîo Gunnlaugsson is already facing calls to resign after documents revealed he opened a shell company to allegedly hide money in the British Virgin Islands.
Other prominent names mentioned include Saudi Arabia’s King Salman, and family members and associates of British Prime Minister David Cameron, Chinese Premier Li Peng and Syrian President Bashar al-Assad.
“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,” ICIJ director Gerard Ryle told the BBC.
4. Did everyone involved break the law?
Not necessarily. Keeping money in offshore accounts can be perfectly legal, and the practice can be preferable in some countries to keep the funds protected from criminals or taxes. However, it’s also a favored method of criminals to launder money and corrupt politicians to hide funds.
5. What’s next?
Criminal investigations are sure to follow in dozens of countries, and more revelations are sure to emerge as the documents are pored over more thoroughly. As of yet, no U.S. politicians have been named, but as this tweet suggests, that may soon change:
http://www.marketwatch.com/story/5-things-to-know-about-the-panama-papers-2016-04-03
Gold is $1,581/oz today. When it hits $2,000, it will be up 26.5%. Let's see how long that takes. - De 3/11/2013 - ANSWER: 7 Years, 5 Months
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