brad brace

4/9/2016

Panama Papers

panamapapers

The Panama Papers reportedly cover more than 40 years of Mossack Fonseca’s operations on behalf of a who’s-who list of the global elite, including numerous important politicians and current or former heads of state, international criminals and star athletes, along with any number of less charismatic but equally wealthy corporations and individuals. Close associates of Russian President Vladimir Putin appear in the Mossack documents (although Putin himself is not named), as do the father of British Prime Minister David Cameron, members of the Saudi royal family, the president of Ukraine and the prime minister of Pakistan. The Icelandic prime minister, named as a Mossack client with offshore holdings, was forced to resign on Tuesday, before apparently reversing himself on Wednesday. It’s safe to say the ripple effects of these revelations will be felt for years, if not decades. Mossack evidently created some 214,000 anonymous offshore companies for its moneyed clientele–“shell firms” with sham directors and phony boards of directors, reports the SZ, designed such that their “true purpose and ownership structure is indecipherable from the outside.” In most of these cases, “concealing the identities of the true company owners was the primary aim,” and the documents suggest that Mossack routinely engages in business practices that “potentially violate sanctions, in addition to aiding and abetting tax evasion and money laundering.” They’re just the tip of a really big iceberg. That’s true in several senses. First of all, although Mossack Fonseca is a major player in the lucrative international industry of helping the rich get richer, it’s only one company among the network of bankers and lawyers and honey-tongued advisers competing to grovel before the world’s elite caste and make safe their massive wealth. Perhaps the rich still believe they deserve to be rich, and too many of the non-rich believe it too. But their desperate attempts to hide their wealth beneath armies of lawyers and nests of imaginary companies and mailing addresses on distant islands suggest otherwise. They’re afraid that the illusion may be crumbling. They’re afraid that one of these days we’ll figure out how they got that money and decide to take it back.

Powered by WordPress