That a bunch of wealthy people and leaders of several countries have money stashed in offshore accounts as reported in the Panama Papers, an expose by more than 100 news outlets around the world, probably doesn’t come as a surprise to many people. Newly released information about more than 200,000 offshore bank accounts established in Panama since 1977 identified files linked to people and companies close to Russian President Vladimir Putin, as well as the prime ministers of Iceland and Pakistan, the president of Ukraine, the king of Saudi Arabia, and business leaders, celebrities and sports stars. The list of names includes soccer player Lionel Messi, leaders of soccer’s ruling body FIFA, actor Jackie Chan, and 29 billionaires on Forbes Magazine’s list of the world’s 500 richest people, says the International Consortium of Investigative Journalists, the collaborative group that released the findings. The consortium plans to reveal all of the names in early May. But Panama is just one of about 70 tax haven countries worldwide that host offshore accounts. And it’s just as likely that the cache of 11.5 million records could include ordinary citizens, too. The Tribune-Review, in a national award-winning series called “$hadow Economy,â€? demonstrated in 2012 that almost anyone could use a shell company to open an offshore account for less than $1,000 to hide money from government taxes, business partners, spouses and others. “You don’t have to be wealthy,â€? James Henry, senior adviser for the Tax Justice Network, a London-based nonprofit that advocates for tighter financial regulation, told the Trib on Monday. “The problem is that it’s become infectious because we’ve let these elite groups get away with it. … More and more people are thinking they’re fools to pay taxes. ‘Why should I pay when everyone else is getting away with murder, especially the elites?’ â€? The Panama Papers draws on files obtained from a Panama-based law firm, Mossack Fonseca, the consortium said. The files were taken by computer hackers, a co-founder of the firm told a Panamanian television station. The German newspaper Sueddeutsche Zeitung said it received the data from an anonymous source more than a year ago. The Munich-based daily collaborated with the consortium, which includes more than 100 news outlets such as The Miami Herald, The Charlotte Observer and The McClatchy Co. Ramon Fonseca, who co-founded the Panamanian law firm, said most of the people being named in news reports about big offshore accounts were not the firm’s direct clients, saying the accounts were mainly established by financial intermediaries. He also said the law firm did not engage in any wrongdoing. “We are not responsible for the actions of a corporation that we set up,â€? Fonseca said in a TV interview, noting that there are many legitimate reasons for having an offshore account. The files leaked to the consortium include information on 214,488 offshore entities, connected to people in more than 200 countries. In all, the German newspaper received 2.6 terabytes of data, or enough to fit on 600 DVDs. The data includes emails, financial spreadsheets, passport information and corporate records, from 1977 through the end of 2015. People seeking to hide assets can include “everybodyâ€? and “anybody,â€? Christine Clough, spokeswoman for Global Financial Integrity, a Washington nonprofit that tracks illicit money, told the Trib. That can mean people engaged in high-value divorces, drug traffickers and other criminals, tax evaders and large corporations, she said. “You definitely don’t necessarily have to be famous or a high-ranking politician,â€? Clough said. “It’s hard to say what the threshold is.â€? The true cost of offshore banking remains hidden, too, she said. Developing countries lose more than $1 trillion a year to hidden bank accounts and shell companies, Global Financial Integrity reported in December. The true amount stacks up higher, equivalent perhaps to more than half of the world’s money. Some estimates four years ago put the total closer to $25 trillion. The Organisation for Economic Co-operation and Development, an international group that has pushed for countries to have tighter financial regulations, called Panama “the last major holdout.â€? The country has backtracked on automatically exchanging financial account information, it said. But Americans don’t even have to leave the country to stash their money, Henry, at Tax Justice Network, told the Trib. Popular hiding places in the United States include Delaware, Nevada, Wyoming and other states that have made it possible for people to shelter money anonymously, he said. “It’s become easier and easier,â€? Henry said. “There’s kind of a seamless network.â€? Andrew Conte is a member of the Tribune-Review investigations team. Reach him at 412-320-7835 or andrewconte@tribweb.com. The Associated Press contributed to this report.
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