Source: BBC
Panamanian law firm Mossack Fonseca is at the heart of one off the largest money laundering schemes in history after 11 million documents were leaked from the firm.
Those documents allegedly reveal how the firm helped rich and powerful clients use tax havens to launder money, dodge sanctions and hide their wealth from tax authorities.
Described as one of the world’s most secretive companies, Mossack Fonseca is so far denying any wrongdoing.
According to the BBC, the company says it has operated beyond reproach for 40 years and has never been charged with criminal wrongdoing.
Gerard Ryle, director of the International Consortium of Investigative Journalists (ICIJ), said the documents covered 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 added.
In a statement Mossack Fonseca said: “[The] 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 documents were first passed to German newspaper Süddeutsche Zeitung, which then shared them with the International Consortium of Investigative Journalists. BBC Panorama and UK newspaper the Guardian. All together, 109 media organizations in 76 countries have been analyzing the documents. The identity of the source is not known.
About the leaked documents
French President Francois Hollande hailed the “good revelations” which would “increase tax revenues from those who commit fraud”.
The documents show 12 current or former heads of state and at least 60 people linked to current or former world leaders in the data.
They include the Icelandic Prime Minister, Sigmundur David Gunnlaugson, who had an undeclared interest linked to his wife’s wealth. He has said he will not resign.
The files also reveal a suspected billion-dollar money-laundering ring involving close associates of Russian President Vladimir Putin.
The documents also shed light on how Mossack Fonseca offered financial services designed to help business clients hide their wealth.
One wealthy client, U.S. 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.
The data also contain secret offshore companies linked to the families and associates of Egypt’s former President, Hosni Mubarak, former Libyan leader Muammar Gaddafi and Syria’s President Bashar al-Assad.
Russian connection
Also revealed is 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.
