Panama-based law firm, Mossack Fonseca has services which include incorporating companies in offshore jurisdictions such as the British Virgin Islands. Other services include wealth management… Kinda sorta like how HSBC does things…
Mossack Fonseca’s data leak reveals the hidden wealth of some of the world’s leaders, politicians, and celebrities. Face it, when you have a ton of money, the world wants and the world’s governments want two things:
- To know how was the money made and
- How can they get a cut of it.
It’s not known yet how the data was exfiltrated or who leaked it, but 2.6TB was leaked, this infographic is a great visual representation of the size. The gray box is the Panama leak compared to the yellow boxes.
Some findings include:
- Twelve national leaders are among 143 politicians, their families and close associates from around the world known to have been using offshore tax havens.
- A $2bn trail leads all the way to Vladimir Putin. The Russian president’s best friend – a cellist called Sergei Roldugin – is at the centre of a scheme in which money from Russian state banks is hidden offshore. Some of it ends up in a ski resort where in 2013 Putin’s daughter Katerina got married.
- Among national leaders with offshore wealth are Nawaz Sharif, Pakistan’s prime minister; Ayad Allawi, ex-interim prime minister and former vice-president of Iraq; Petro Poroshenko, president of Ukraine; Alaa Mubarak, son of Egypt’s former president; and the prime minister of Iceland, Sigmundur Davíð Gunnlaugsson (who has stepped down and out because of the leak).
- In the UK, six members of the House of Lords, three former Conservative MPs and dozens of donors to British political parties have had offshore assets.
- The families of at least eight current and former members of China’s supreme ruling body, the politburo, have been found to have hidden wealth offshore.
- Twenty-three individuals who have had sanctions imposed on them for supporting the regimes in North Korea, Zimbabwe, Russia, Iran and Syria have been clients of Mossack Fonseca. Their companies were harboured by the Seychelles, the British Virgin Islands, Panama and other jurisdictions.
- A key member of Fifa’s powerful ethics committee, which is supposed to be spearheading reform at world football’s scandal-hit governing body, acted as a lawyer for individuals and companies recently charged with bribery and corruption.
- One leaked memorandum from a partner of Mossack Fonseca said: “Ninety-five per cent of our work coincidentally consists in selling vehicles to avoid taxes.”
Mossack Fonseca says it complies with anti-money-laundering laws and carries out thorough due diligence on all its clients. It says it regrets any misuse of its services and tries actively to prevent it. The firm says it cannot be blamed for failings by intermediaries, who include banks, law firms and accountants.
