Ipoh Community Forums

THE International Consortium of Investigative Journalists (ICIJ) had made a startling revelation of offshore accounts and shell companies belonging to or linked to prominent personalities.

The report titled the “Pandora Papers” was based on leaked records from offshore services firms around the globe.

According to the leaked records, ICIJ had unearthed and discovered many top political figures and career criminals who had abused the offshore financial system, which is shrouded in secrecy, to facilitate tax evasion and conceal wealth obtained from illicit activities and illegitimate cross-border financing.

The establishment of offshore companies and bank accounts is not illegal nor uncommon among businessmen who operate across international borders to be free and exempt from high taxes, to facilitate global trading, relaxation of accounting and tax filings and asset protection.

However, the concerns on these offshore shelters is that it is open to abuse by tax evaders and criminals to launder illicit funds. In this regard, it provides a web of protection to tax evaders, conceals the origins of illegitimate sources of funds and provides a safe haven for corrupt government officials because it is based on a system of financial secrecy, interlocking layers of protection by anonymity and lenient anti-money laundering procedures.

It is common that there is no legal obligation to disclose beneficial ownership for offshore companies in any jurisdiction.

In the world of offshore operations, it is also common that nominee directors and trustees are paid to hide the true identities of who are really behind these vehicles.

- More -

superadmin