A few months ago, Panama left the gray list of the Financial Action Task Force (FATF). The FATF confirmed that Panama has a legal framework, but a few days ago, there was a story that shocked the world and questioned many things about the country and its economic activities.
A yearlong investigation has revealed millions of classified documents, pointing to corruption of the world, politicians and other leaders. Filtration has revealed how wealthy and powerful people use tax havens to hide their wealth. 11 million documents were leaked from one of the most secret companies in the world, the Panamanian law firm Mossak Fonseca.”
News organizations around the world, have published the research on the basis of a massive discovery of leaked documents, revealing corruption and questionable business of world leaders, politicians, sportstars and other personalities.
The International Consortium of Investigative Journalists (ICIJ), based in Washington, published a series of confidential documents allegedly linked to Panamanian law firm Mossack Fonseca last Sunday, who denounce the existence of tax havens used by rich and powerful around the world.
According to these reports, leaders and senior officials from around the world allegedly used offshore companies and secret accounts to hide billions of dollars.
The documents, known as “the Panama Papers” mostly contain emails, PDF files and photos belonging to Mossack Fonseca, one of the largest providers of offshore financial services. They can represent large world history leak of classified information.
Why are they called the ‘Panama Papers’?
The millions of documents dating back four decades, would be connected with the Panamanian law firm Mossack Fonseca. The consortium of journalists reported that the firm helped, set up front companies and offshore accounts for global players.
Who is involved in the Panama Papers?
The documents refer to 12 current or former world leaders and 128 other politicians and officials. In addition to the allegations involving Putin and FIFA, the documents also accuse the Prime Minister of Iceland for having ties through his wife, an offshore company did not disclose adequately. The documents allegedly show that the president of Argentina, Mauricio Macri, have not adequately disclose the assets he had when he was the Mayor of Buenos Aires.
Do the characters involved necessarily committed crimes?
No. As pointed out by The Guardian, another means involved, using offshore structures is completely legal and there are many legitimate reasons to do so, especially in countries with exchange restrictions for many reasons. However, the paper makes clear that many of those involved are themselves involved in illegal activities, which can range from having undeclared assets or money laundering. Offshore companies can also serve as a screen to make money transfers, open bank accounts abroad and make trades without paying taxes.
Now, one of the strengths that now has the economy in Panama is the strong attraction of Foreign Direct Investment (FDI) since Panama remains one of the main recipients being the country that more Foreign Investment Domestic Product Gross has attracted in the region, occupying the No. 9 position worldwide in the Global Competitiveness Index. And it does not mean that, why Panama is the country where the star ” Panama Papers ” for all work well. Most of the population both foreign nationals living in Panama, everyday work and honored with a competitive salary.