For each name found in the body of documents , the team asked the questions ,
What is this person ’ s role in the network of companies ? Where does the money come from ? Where is it going ? Is this structure legal ? Source
As SZ says on its website , owning a shell corporation , in and of itself , is not illegal . But they can and are used regularly to hide their true owners from sight , often behind proxies to keep their clients ’ names secret . Here ’ s how Süddeutsche Zeitung described it :
From the outset , the journalists had their work cut out for them . The providers of offshore companies — among them banks , lawyers , and investment advisors — often keep their clients ’ names secret and use proxies . In turn , the proxies ’ tracks then lead to heads of state , important officials , and millionaires . Over the course of the international project , journalists cooperated with one another to investigate thousands of leads : they examined evidence , studied contracts , and spoke with experts .
Among others , Mossack Fonseca ’ s clients include criminals and members of various Mafia groups . The documents also expose bribery scandals and corrupt heads of state and governments . The alleged offshore companies of twelve current and former heads of state make up one of the most spectacular parts of the leak , as do the links to other leaders , and to their families , friends , and closest advisors . The Panamanian law firm also counts almost 200 other politicians from around the globe among its clients , including a number of ministers . ( emphasis added ) Source
HOW SHELL / OFFSHORE COMPANIES ENABLE CRIMINAL ACTIVITIES
The use of shell or offshore companies to hide business practices has become commonplace in our world today . In order to maintain the global financial system , money laundering is essential . Banks create money and support the existing economy by accepting deposits , which they can then lend out as new loans . Banks turn a blind eye to deposits from criminal sources and use shell companies as a way to launder capital .
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In a private email , I asked a retired judge to explain how shell companies are used , and the explanation should make it clear why the Panama Papers leak is so important .
I am actually familiar with the Panama shell game process because I once considered setting up an offshore account there .
Basically the accounts are set up with the names of real Panamanian people who signed a number of undated forms in blank to set up the offshore account . Panama only requires the names of the original Owners / Officers be recorded . Under Panama law , anyone can purchase the shell company through a law firm and not have to record their names or anything more other than the law firm of record , which then claims client confidentiality .
Panama ’ s laws actually encourage this shell game process and they are greatly influenced by the Washington , DC gang . Panama used United States
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