Panama Papers: Mossack Fonseca leak reveals elite’s tax havens – Katar Investments

News

Panama Papers: Mossack Fonseca leak reveals elite’s tax havens

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.

Panama Papers reaction – latest
The documents show links to 72 current or former heads of state in the data, including the Icelandic Prime Minister, Sigmundur Gunnlaugson, who had an undeclared interest linked to his wife’s wealth and is now facing calls for his resignation.
The files also reveal a suspected billion-dollar money laundering ring involving close associates of President Putin.
Gerard Ryle, director of the International Consortium of Investigative Journalists (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 Sueddeutsche Zeitung, which then shared them with the International Consortium of Investigative Journalists. BBC Panorama and UK newspaper the Guardian are among 107 media organisations in 78 countries which have been analysing the documents. The BBC does not 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

Tricks of the trade: How assets are hidden and taxes evaded

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 documents also shed light on how Mossack Fonseca offered financial services designed to help business clients hide their wealth.

One wealthy client, American millionaire and life coach Marianna Olszewski, was offered fake ownership records to hide money from the authorities. This is in direct breach of international regulations designed to stop money laundering and tax evasion.

An email from a Mossack executive to Ms Olszewski in January 2009 explains how she could deceive the bank: “We may use a natural person who will act as the beneficial owner… and therefore his name will be disclosed to the bank. Since this is a very sensitive matter, fees are quite high.”

Ms Olszewski did not respond to the BBC’s questions.

In a statement, Mossack Fonseca said: “Your allegations that we provide structures supposedly designed to hide the identity of the real owners, are completely unsupported and false.

“We do not provide beneficiary services to deceive banks. It is difficult, not to say impossible, not to provide banks with the identity of final beneficiaries and the origin of funds.”

The data also 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.