Not just billionaires hide money, professionals do, too.
By Crystal Tsoi
WASHINGTON, DC: The International Consortium of Investigative Journalists (ICIJ), a Washington-based global network of reporters, has released findings from over 2.5 million leaked files that reveals the intricate workings of offshore economic structures that many have used to conceal international monetary transactions.
These findings comes after an arduous 15-month long investigation that included almost 30 years’ worth of documentation in the forms of emails, account ledgers and other types of files. With the help of 46 journalists from various countries and multiple media partners, the report released by ICIJ is the end result of what is the biggest accumulation of inside information about the offshore economic infrastructure.
According to Director of ICIJ Gerard Ryle, in a press release, “We already knew how secret and inaccessible the offshore industry is.” However, what came as a surprise was the pervasiveness of such a system internationally and in the demographics of those who participated.
The investigation has slowly discovered that more than just billionaires take advantage of the secrecy and anonymity of the offshore system.
“It draws its clients not only from the world’s super-wealthy, but also from everyday professionals from all around the world,” said Ryle.
The records show an extensive clientele from over 170 countries and territories with more than 120,000 offshore companies and private trusts. From politicians to billionaires, the leaked files disclosed more than just names and numbers but also many notable individuals with various trusts and companies in tax havens such as the British Virgin Islands and the Cook Islands among other offshore locations.
A plethora of American names were sprinkled throughout the files. Among the almost 4,000 American names found tied to offshore accounts included Grammy-nominated songwriter Denise Rich, the ex-wife of Marc Rich, who was wanted on racketeering and tax evasion charges.
Rich resigned her U.S. citizenship in 2011 and is now a citizen in Austria.
The files also indicate that two two Swiss banks, UBS and Clariden (owned by Credit Suisse), have worked extensively with Singapore-based Portcullis Trustnet Group to create the utmost anonymity for its clients. According to its website, Trustnet is “Asia’s biggest independent group of trust companies for comprehensive wealth administration.”
ICIJ’s investigation found 30 American individuals in Trustnet’s files who have been “accused in lawsuits or criminal cases of fraud, money laundering or other serious financial misconduct.” In light of the release of ICIJ’s report, Trustnet’s website has issued a news update reassuring their clients that “controls and safeguards are in place to protect client confidentiality.”
“We are confident that our business activities and client services are legitimate and conducted in compliance with laws and regulations in the jurisdictions in which we operate,” according to the update.
ICIJ and its media partners will release stories with more findings until April 15th and will continue to push out stories as the investigation of the files continue throughout the year.
“This investigation lifts the curtain on the offshore system and provides a transparent look into the secret world of tax havens and the individuals and companies that use and benefit from them,” said Ryle.
Below are some of the key findings pushed forth by the ICIJ report:
- In the recent Greek fiscal crisis, the tax haven of Cyprus has acted as a facilitator in the banking meltdown. The large flow of money in the offshore system has been linked to an influx of cash from Russia that has inflated local banks’ assets as well as tax cheating.
- Offshore havens are essential for individuals partaking in Ponzi schemes and fraud who use these locations and their mechanisms to more easily move money and assets around.
- Banks such as UBS, Clariden (owned by Credit Suisse) and Deutsche Bank are among the many top banks that take great lengths to ensure the secrecy and of their clients–many of whom include individuals of extreme wealth who use these structures to purchase expensive assets.