Panama Papers Scandal sparks chorus of denials

World leaders and celebrities exposed in a massive leak of their secret offshore financial dealings are hitting back, saying they have done nothing wrong despite a growing international furore, reports AFP.
Some of the biggest names in the scandal said they were being unfairly targeted even as the scandal mushroomed and a series of countries vowed to open tax evasion investigations following the leak of 11.5 million confidential documents -- the so-called Panama Papers.
The vast stash of records from Panamanian legal firm Mossack Fonseca was obtained from an anonymous source by German daily Sueddeutsche Zeitung and shared with more than 100 media groups by the International Consortium of Investigative Journalists, which published their first findings Sunday after a year-long probe.
Among those named by the ICIJ and fellow media groups for their offshore dealings are relatives of Chinese leader Xi Jinping, close associates of Russian President Vladimir Putin, Iceland's Prime Minister Sigmundur David Gunnlaugsson, and Barcelona striker Lionel Messi.
 The trio of British banking giant HSBC and Swiss institutions UBS and Credit Suisse set up more than 4,500 offshore companies through Panama-based law firm Mossack Fonseca, Le Monde newspaper reported Tuesday, reports AFP.
HSBC created 2,300 offshore companies, Credit Suisse has 1,105 and UBS, has 1,100, while France's Societe Generale has 979, according to the latest revelations from the vast leak of documents dubbed the Panama Papers.
Le Monde reported that 365 banks across the world had used the services of Mossack Fonseca, the firm at the centre of the allegations.
Other major banks mentioned in the report include Germany's Deutsche Bank and Nordea, which does business in Nordic and Baltic countries.
Offshore companies can be used for legitimate purposes, but they have in the past been used to launder money and evade taxes.
The banks cited by Le Monde rejected any wrongdoing.
The CEO of Credit Suisse, Tidjane Thiam, said Tuesday his bank would endorse only "legitimate" offshore arrangements.
"We only accept offshore structures, vehicles, if they serve legitimate purposes," Thiam said, speaking in Hong Kong.
"Clearly, tax avoidance is not one of those," he added.
"We insist on knowing who is the beneficial owner. If it's not revealed, we will not engage in business with that entity," he added.
HSBC meanwhile said: "We work closely with the authorities to fight financial crime and implement sanctions."
The bank said it had a clear policy that offshore account holders had to be "thoroughly vetted", where national authorities requested that the bank keep the account open "for the purpose of monitoring activity" or where an account had been frozen because of international sanctions.
A UBS spokesman told AFP that the bank "conducts its business in full accordance with the applicable regulations".
"The bank has no interest in funds which are not in line with fiscal rules or which come from illegal activity," he added.
The trove of Panama Papers documents was anonymously leaked to German daily Sueddeutsche Zeitung and shared with more than 100 media groups by the International Consortium of Investigative Journalists (ICIJ). More revelations are expected over the coming weeks.
'Groundless allegations'
Offshore financial dealings are not illegal in themselves but may be used to hide assets from tax authorities, launder the proceeds of criminal activities or conceal misappropriated or politically inconvenient wealth.
In Beijing, there was no official reaction to ICIJ allegations that eight current or former members of the ruling party's most powerful body concealed their fortunes through offshore havens, as well as relatives of Xi Jinping, who has overseen a much-publicised anti-corruption drive.
Asked whether China would investigate those named in the reports, however, foreign ministry spokesman Hong Lei said: "For such groundless accusations, I have no comment."
The Kremlin suggested a US plot after the leaks put a close friend of Putin's at the top of an offshore empire worth more than $2 billion.
"Putin, Russia, our country, our stability and the upcoming elections are the main target, specifically to destabilise the situation," said a Kremlin spokesman, claiming many of the journalists were former officers from the US state department, the CIA and special services.
 'Will not quit'
Iceland's prime minister, former journalist Sigmundur David Gunnlaugsson, resisted mounting pressure to step down after the leaked documents purportedly showed that he and his wife bought a company in the British Virgin Islands in 2007.
Huge crowds gathered outside parliament late Monday demanding he quit and the opposition is set to table a motion of no-confidence over the allegations. But the prime minister insisted he had never hidden money abroad.

 

Panama Papers Scandal sparks chorus of denials

World leaders and celebrities exposed in a massive leak of their secret offshore financial dealings are hitting back, saying they have done nothing wrong despite a growing international furore, reports AFP. Some of the biggest names in the scandal said they were being unfairly targeted even as the scandal mushroomed and a series of countries vowed to open tax evasion investigations following the leak of 11.5 million confidential documents -- the so-called Panama Papers. The vast stash of records from Panamanian legal firm Mossack Fonseca was obtained from an anonymous source by German daily Sueddeutsche Zeitung and shared with more than 100 media groups by the International Consortium of Investigative Journalists, which published their first findings Sunday after a year-long probe. Among those named by the ICIJ and fellow media groups for their offshore dealings are relatives of Chinese leader Xi Jinping, close associates of Russian President Vladimir Putin, Icelands Prime Minister Sigmundur David Gunnlaugsson, and Barcelona striker Lionel Messi. The trio of British banking giant HSBC and Swiss institutions UBS and Credit Suisse set up more than 4,500 offshore companies through Panama-based law firm Mossack Fonseca, Le Monde newspaper reported Tuesday, reports AFP. HSBC created 2,300 offshore companies, Credit Suisse has 1,105 and UBS, has 1,100, while Frances Societe Generale has 979, according to the latest revelations from the vast leak of documents dubbed the Panama Papers. Le Monde reported that 365 banks across the world had used the services of Mossack Fonseca, the firm at the centre of the allegations. Other major banks mentioned in the report include Germanys Deutsche Bank and Nordea, which does business in Nordic and Baltic countries. Offshore companies can be used for legitimate purposes, but they have in the past been used to launder money and evade taxes. The banks cited by Le Monde rejected any wrongdoing. The CEO of Credit Suisse, Tidjane Thiam, said Tuesday his bank would endorse only legitimate offshore arrangements. We only accept offshore structures, vehicles, if they serve legitimate purposes, Thiam said, speaking in Hong Kong. Clearly, tax avoidance is not one of those, he added. We insist on knowing who is the beneficial owner. If its not revealed, we will not engage in business with that entity, he added. HSBC meanwhile said: We work closely with the authorities to fight financial crime and implement sanctions. The bank said it had a clear policy that offshore account holders had to be thoroughly vetted, where national authorities requested that the bank keep the account open for the purpose of monitoring activity or where an account had been frozen because of international sanctions. A UBS spokesman told AFP that the bank conducts its business in full accordance with the applicable regulations. The bank has no interest in funds which are not in line with fiscal rules or which come from illegal activity, he added. The trove of Panama Papers documents was anonymously leaked to German daily Sueddeutsche Zeitung and shared with more than 100 media groups by the International Consortium of Investigative Journalists (ICIJ). More revelations are expected over the coming weeks. Groundless allegations Offshore financial dealings are not illegal in themselves but may be used to hide assets from tax authorities, launder the proceeds of criminal activities or conceal misappropriated or politically inconvenient wealth. In Beijing, there was no official reaction to ICIJ allegations that eight current or former members of the ruling partys most powerful body concealed their fortunes through offshore havens, as well as relatives of Xi Jinping, who has overseen a much-publicised anti-corruption drive. Asked whether China would investigate those named in the reports, however, foreign ministry spokesman Hong Lei said: For such groundless accusations, I have no comment. The Kremlin suggested a US plot after the leaks put a close friend of Putins at the top of an offshore empire worth more than $2 billion. Putin, Russia, our country, our stability and the upcoming elections are the main target, specifically to destabilise the situation, said a Kremlin spokesman, claiming many of the journalists were former officers from the US state department, the CIA and special services. Will not quit Icelands prime minister, former journalist Sigmundur David Gunnlaugsson, resisted mounting pressure to step down after the leaked documents purportedly showed that he and his wife bought a company in the British Virgin Islands in 2007. Huge crowds gathered outside parliament late Monday demanding he quit and the opposition is set to table a motion of no-confidence over the allegations. But the prime minister insisted he had never hidden money abroad.