By Daniel Brouse
The Panama Papers is the name being attached to the world’s largest data breach. A Panama law firm known for offshore business structures had 11,000,000 files stolen. Most of the activities did not take place in Panama, so the name is a bit misleading. Most of the transactions took place in territories, such as, the British Virgin Islands.
An anonymous “whistle blower” gave the data to a German newspaper. The German newspaper is sharing the data with the ICIJ. The International Consortium of Investigative Journalists has hundreds of journalist from around the world working on analyzing the data.
Not About Taxes. About Corruption.
Contrary to common conspiracy theorists, most of the findings do not have to do with tax evasion. Almost all of the named parties are using the shell companies to hide money for other reasons. So far, all of the Americans mentioned are already known criminals.
The names taking the international headlines are mostly political leaders that have been hiding money from their own governments (because they are corrupt and need to hide their ill-gotten gains.) These officials would gladly pay taxes on the money, but they can’t explain how the money was earned. This isn’t about the taxes. This is about laundering money.
The Prime Minister of Iceland stepped down when it was revealed he had hid millions of dollars during his disclosure to Parliament. Vladimir Putin is said to be hiding money from his government in an account set-up under his cellist. The Chinese leaders are accused of the same behavior.
The others being named are individuals placed on sanctions, convicted criminals, and shell companies for the proceeds from Ponzi schemes. In addition to personal corruption, there is also evidence of sanctioned States committing violations. The law firm, Mossack Fonseca, “helped firms subject to sanctions”, such as, links to North Korea’s nuclear weapons program. Another rogue State utilizing the black market is Syria. Mossack Fonseca serviced Assad cousin’s firms despite Syria being on the world watch list.
The current count is:
World Leaders 12
Sanctioned individuals or companies 33