Good morning readers,
Hows your night? Recently, we heard about Panama Papers? I bet, some of you are still confuse about this news. Panama Papers become one of or the biggest leak in history. Its related with many peoples, companies, and others for 40 years.
Now, we will simplify the news for easy reading. This article is a part one, for learn the background. Later, we will add with the impact and action plan. Absolutely, this leak is biggest risk that become catastrophic impact in a very rare frequency.
- A leaked set of 11.5 million confidential documents for more than 214,000 offshore companies listed by the Panamanian corporate service provider Mossack Fonseca.
- The total size of the leaked documents – Wikileaks Cablegate 2010 (1.7 GB), Offshore Leaks 2013 (260 GB), Lux Leaks 2014 (4 GB), and Swiss Leaks 2015 (3.3 GB).
- The leak comprises 4,804,618 emails, 3,047,306 database format files, 2,154,264 PDFs, 1,117,026 images, 320,166 text files, and 2,242 files in other formats.
- Period from the 1970s to 2016.
- Transaction- Laundered over £10 million of cash from the sale of the gold stolen in the Brink’s-Mat robbery , via banks in Switzerland, Liechtenstein, Jersey and the Isle of Man and recycle it into purchase in land and property in the United Kingdom.
- Peoples – E.g. the Argentine President Mauricio Macri was listed as a leader of a Bahamas. Several high-profile individuals – Lionel Messi, Amitabh Bachchan, Jackie Chan, etc.
- Companies – more than 100 countries (e.g.Hong Kong, Switzerland, the United Kingdom, Luxembourg, Panama, and Cyprus); more than 14,000 banks, law firms, foundations. Also more than 500 banks registered nearly 15,600 shell companies with Mossack Fonseca – (HSBC, Dexia (Luxembourg), J. Safra Sarasin (Luxembourg), Credit Suisse (Channel Islands), UBS (Switzerland), and Nordea (Luxembourg).
- Mossack Fonseca statement “did not address any of the specific due-diligence failings uncovered by reporters”. Also said that “While we may have been the victim of a data breach, nothing we’ve seen in this illegally obtained cache of documents suggests we’ve done anything illegal. But in the meantime, our plan is to continue to serve our clients”.
(source: https://en.wikipedia.org/wiki/Panama_Papers) .
To give a clear picture of who are (might be) involve, pls find as follow.
The complete picture, please find on source: https://panamapapers.icij.org/the_power_players/)
- The first data were supplied to the Süddeutsche Zeitung in August 2015 by an anonymous source, and subsequently to the U.S.-based International Consortium of Investigative Journalists (ICIJ)
- The first news reports based on the set, along with 149 of the documents themselves, were published on April 3, 2016, and a full list of companies is due to be released in early May 2016. (source: https://en.wikipedia.org/wiki/Panama_Papers) .
- The papers were distributed to and analyzed by about 400 journalists at 107 media organizations in more than 80 countries.
- Target: wealthy public officials – Argentina, Iceland, Saudi Arabia, Ukraine, and the United Arab Emirates. Government officials, close relatives, and close associates of various heads of government of more than 40 other countries, including Brazil, China, Peru, France, India, Malaysia, Mexico, Pakistan, Romania, Russia, South Africa, Spain, Syria, and the United Kingdom.
- The source thought Mossack Fonseca was behaving unethically.
- The source thinks that this law firm in Panama is doing real harm to the world, and the source wants to end that.
- The document was belong to Mossack Fonseca, which is a Panamanian law firm and corporate service provider founded in 1977 by Jürgen Mossack and Ramón Fonseca.
- The firm works with the world’s biggest financial institutions, such as Deutsche Bank, HSBC, Société Générale, Credit Suisse, UBS, Commerzbank and Nordea.
To give you a better understanding of Mossack Fonseca, please follow me (source: https://panamapapers.icij.org/graphs/)
- Early year 2015 German tax authorities bought an information from a whistle blower
- April 2015, the German newspaper Süddeutsche Zeitung was offered large caches of documents from an anonymous source.
- April 2016, document spread out to the world.
- Communication with the source only via encrypted channels.
Having an offshore company is not illegal, it’s a logical choice.
- Provide how money comes from any resource, show you a flow of global financial system that could be indicate financial crime, bribery, and avoid tax revenues. E.g. Commerzbank in a tax-fraud. “Operation Car Wash in bribery and money laundering.
- Document show offshore player failed to follow due diligence aspects, ensure clients and its money are not involved in criminal enterprises, tax dodging, or even political corruption. E.g.customer include on Ponzi scheme, drug kingpins, tax evaders, bribery allegations convulsing FIFA..
- Major global banks behind the creation of hard-to-trace offshore companies in offshore heavens area. E.g. HSBC, UBS.
- Some technique are: disguised payments, backdated documents, hide identity of real owner, and non-direct support with media. E.g. Mossack Fonseca help King Salman take a luxury yachts. Prime Minister Sigmundur David and wife owned offshore firm during financial crisis.