Search Results for: panama papers

Oh, the things you can learn from the Panama Papers. Did you know that documenting ownership of a shell company through bearer stocks is even a real thing?

Image courtesy of DollarPhotoClub.com
Image courtesy of DollarPhotoClub.com

Yes, it is actually possible to organize your offshore company with the ownership documented with bearer stocks. Join me as I dive into the fine details of a WSJ article.

4/6 – Wall Street Journal – Panama Papers: Hiding Cash Has Become Crummy Business – Even Switzerland has joined the crackdown on hiding money. Prosecutors there leaked information on the Malaysian scandal. That’s a whole other story that I won’t go into. The point is Swiss prosecutors are going after money launderers and embezzlers. Swiss prosecutors.  You know, from Switzerland. Land-of-the-numbered-account Switzerland.

More detail from the article:

The offshore “business” has been shrinking for a long time. Article says the firm of Mossack Fonseca & Co saw a two-thirds decline in the number of companies they incorporated between 2005 and 2015, dropping from 13,287 to 4,341 in a decade.

Article says the Panama Papers say the law firm’s clients have incorporated 16,323 companies over the last three years but have closed up 28,777 in the same time. That’s a net shrinkage of over 12,000.

The company represented around 6,000 businesses in 2005 whose ownership was evidenced using bearer shares. Currently they represent 170. That’s a drop of 97% in a decade in the number of clients using bearer shares.

Bearer shares. Did you know that was even a thing? Before I get to that, let me describe bearer bonds.

Bearer bonds

Oh, the things you can learn from the Panama Papers. Did you know that documenting ownership of a shell company through bearer stocks is even a real thing? Read More »

Initial follow-up to Panama Papers leak

Image courtesy of DollarPhotoClub.com
Image courtesy of DollarPhotoClub.com

Previously mentioned the massive leak of data about offshore banking that hit headlines this past Sunday. This is now called either the Panama Papers or Panama leak, take your pick. Here are a few of the initial articles on the follow-up that I found interesting.

There are more and deeper issues than just tax evasion. By the way, the term we should be discussing is tax evasion, not tax avoidance. Avoidance means complying with the tax law in order to lawfully reduce your tax bill. Evasion means breaking the law.

Simple introduction to offshore banking

4/4 – Vox – The Panama Papers leak, explained with an adorable comic about piggy banks – Simple cartoon gives a great illustration of a little boy hiding some quarters from his mommy in a piggy bank stored in his little friend’s closet. Lots of other little boys to the same. Eventually the friend’s mommy finds all the piggy banks and calls all the moms.

Some of the little boys may just have wanted to hide a few extra quarters from mommy because they wanted some privacy. Others may have been stealing lunch money from their schoolmates and don’t want mommy to know. Some may have been stealing from mommy’s purse. Yet others may have been wanting to save up a couple of dollars to buy an actual surprise birthday present for mommy and daddy. Some have gotten tired of their siblings sneaking into their piggy bank.

First casualty

4/5 – The Guardian – Iceland prime minister resigns over Panama Papers revelations – Watch how fast things have developed.

Initial follow-up to Panama Papers leak Read More »

Massive document leak on offshore banking. Intro to the Panama Papers.

Old style money laundering. Image courtesy of DollarPhotoClub.com
Old style money laundering. Image courtesy of DollarPhotoClub.com

A massive amount of whistle blower information was announced over the weekend. The files are from a large law firm in Panama that helped companies and individuals set up offshore companies. This is called the Panama Papers.

There are many legitimate reasons to use offshore companies. There are many illegitimate reasons too.

I’ve just started looking at the story. Here are a few introductory tidbits.

Massive document leak on offshore banking. Intro to the Panama Papers. Read More »

Another major investigation of bank secrecy: Pandora Papers.

Image courtesy of Adobe Stock.

Looks like there is another flood of reporting ready to appear in print on bank secrecy and hiding wealth.

This project will be called the Pandora Papers.

If you recall, a major series of reports back in the 2016 timeframe described money laundering efforts flowing through one particular law firm in Panama. You can read my comments on the coverage.

The International Consortium of Investigative Journalists (ICIJ) brought together around 600 journalists from about 150 media outlets to analyze a data leak with 2.94 TB of info. That’s terabytes, as in thousands of gigabytes.

The ICIJ kickoff summary was published on 11/3/21: Pandora Papers: An offshore data tsunami.

If you are at all interested in offshore banking, or money laundering, or the world-far-away of hiding or relocating wealth even without nefarious intent, you will want to pay attention.

Looks like there will be a lot of coverage, what with 330 politicians and 130 people on the Forbes billionaire list showing up in the data.

From a first glance, it looks like this project have as one focus the structure of banks and professionals that service this market.

Another major investigation of bank secrecy: Pandora Papers. Read More »

Reporters will not be sharing Panama Paper files with criminal investigators. Reporters are thinking they are journalists, not law enforcement staff.

Image courtesy DollarPhotoClub.com
Image courtesy DollarPhotoClub.com

A variety of governments want to get a complete set of the original files from the Panama Papers leak. The reporters are saying “no.”

4/19 – The Guardian – Panama Papers: US launches criminal inquiry into tax avoidance claims – First, a tip to the scare-mongering headline writer, editor, and reporter:

  • tax avoidance is not illegal.

Where there is tax evasion, I say throw ‘em in the clink.

On the other hand, as much as the reporter and editor may believe every penny of profit belongs to the government, it is not illegal to comply with the provisions of the tax law.

Other than announcing an investigation has begun, the article gives no more detail.

In particular, there is no indication of how DoJ plans to avoid tainting the investigation by viewing documents it knows are covered by attorney-client privilege. Based on my businessman’s limited knowledge of the law, I think the implications of knowingly viewing documents protected by attorney-client privilege would permanently taint any prosecution brought after reading those documents. That means any case that can be linked to tainted documents would get dismissed.

4/20 – Bloomberg – Panama Leak Spur New York Regulator to Seek Records From Banks – The Department of Financial Services jumps into the fray.

Reporters will not be sharing Panama Paper files with criminal investigators. Reporters are thinking they are journalists, not law enforcement staff. Read More »

Place ‘yer bets, place ‘yer bets! Which government do ya’ think will be next to fall? Place ‘yer bets now!

Image courtesy of DollarPhotoClub.com
Image courtesy of DollarPhotoClub.com

I was planning to wait a day or two before posting this, but realized better get it posted before it is overtaken by events.

Keep in mind the prime minister of Iceland has already resigned.

4/6 – Francine McKenna – Bookmakers set odds for next leader to resign after Panama Papers mention – How’s this for a commentary on the sad state of affairs? Irish bookie is setting odds for the next head of state to resign over revelations from the Panama Papers leak.

Current odds? …

Place ‘yer bets, place ‘yer bets! Which government do ya’ think will be next to fall? Place ‘yer bets now! Read More »