Subtitles section Play video Print subtitles A German newspaper revealed a trove of evidence linking world leaders to tax evasion, money laundering, and bypassing sanctions. The “Panama Papers” are a collection of 11 and a half million documents concerning offshore companies and tax havens spanning from the 1970s to 2015. Implicated are heads of state around the world, in countries like Argentina, Iceland, Saudi Arabia, the United Arab Emirates, and Ukraine, as well as other influential people in 40 other governments. So, what exactly is in the Panama Papers? Well, in August of 2015, an anonymous source provided German newspaper Suddeutsche Zeitung with 2.6 terabytes worth of documents, the biggest data leak in history. In order to research and report on the information, Suddeutsche Zeitung reached out to the International Consortium of Investigative Journalists and roughly 400 journalists at more than 100 media organizations. After a year of investigations, what they discovered was evidence that a Panamanian law firm, known as Mossack Fonseca, had helped their clients hide taxable income from foreign governments, avoid international sanctions, and even launder potentially illegal funds. Mossack Fonseca was able to do this by creating “shell companies” for its clients in tax-free havens, like Panama. These companies largely exist to hold customer money as an “investment”, instead of declaring it as profit or income, and thus having to pay taxes on it. These companies also muddy the connection between the source of the funds, and where they end up. One of the larger reveals in the “Panama Papers” was that the Prime Minister of Iceland used a Panamanian shell company to invest money in three failing Icelandic banks. By not declaring his financial involvement in the outcome of banking negotiations, there was evidently a large conflict of interest. An estimated ten thousand Icelandic citizens protested in the capital, forcing the resignation of the Prime Minister. Other documents show that by way of these shell companies, Syria was able to circumvent international sanctions in order to purchase fuel for its air force. And there are also instances where close friends of Russian President Vladimir Putin made deals with a sanctioned Russian bank through shell corporations. The next few months of disclosures are expected to uncover a tangled web of behind-the-scenes illegal banking among the world’s most powerful people. But whether those named in the documents will ever be prosecuted, or if these revelations will spark revolutions, is yet to be seen. As details continue to emerge, you probably won’t be surprised at some of the more corrupt country leaders implicated in the scandal. Check out our playlist on corruption at the top, starting with our video on some of the world’s most corrupt countries. You can also click the video below to learn about why one of the most authoritarian and restrictive leaders, Russian President Vladimir Putin, is still adored by his constituents. Thanks for watching TestTube News, don’t forget to like and subscribe for new videos every day
B2 US panama shell icelandic iceland russian president vladimir What Are The Panama Papers? 13940 1133 Jeff Chiu posted on 2016/04/08 More Share Save Report Video vocabulary