UBSWhistleblowerGets $104 Million(Links to an external site.)The Wall Street Journal Now a Felon, Former Banker Told U.S. About Tax-Evasion Tactics by UBS and Its Wealthy Clients A former UBS AG banke

6/11/2020 Tax-Haven Crackdown Leads to Whack-a-Mole - WSJ

https://www .wsj.com/articles/tax-haven-crackdown-leads-to-whack-a-mole-1459879228 1/5

This c o py i s f o r y o u r p ers o n al, n on -c o m merc ia l u se o n ly . T o o rd er p re se n ta tio n -r e a d y c o p ie s f o r d is trib u tio n t o y o u r c o lle a g u es, c lie n ts o r c u sto m ers v is it

h tt p s:/ / w ww.d jr e p rin ts .c o m .

htt p s:/ / w ww.w sj.c o m /a rt ic le s/t a x-h ave n -c ra ck d own -le a d s-t o -wh ack -a -m ole -1 4 59 8 79 228

M ARKETS | FIN AN CIA L R EG U LA TION

T ax-H aven C ra ck d ow n L ea d s t o W hack -a -

M ole

‘P an am a P ap ers ’ s h ow d esir e p ers is ts f o r p la ce s t o h id e w ea lt h

T he s k y lin e o f P an am a C it y , w here t h e l a w ir m M oss a ck F on se ca i s b ase d .

PHO TO : C A RLO S J A SS O R EU TE R S

B y

U pdate d A pril 5 , 2 0 16 6 5 7 p m E T

T om F a ir le ss 6/11/2020 Tax-Haven Crackdown Leads to Whack-a-Mole - WSJ

https://www .wsj.com/articles/tax-haven-crackdown-leads-to-whack-a-mole-1459879228 2/5

FR A N KFU RT— In te rn atio n al e ﬀ orts t o c ra ck d ow n o n t a x e v a sio n a n d m on ey

la u n derin g h av e t u rn ed i n to s o m eth in g o f a g am e o f w hack -a -m ole , a s u se rs o f

se cre tiv e o ﬀ sh ore s tr u ctu re s t u rn f r o m t r a d it io n al h av en s t o w ard m ore e x o tic

lo ca tio n s.

T he s o -c a lle d P an am a P ap ers , r e v ea le d t h is w eek b y t h e U .S .- b ase d I n te rn atio n al

C on so rtiu m o f I n vestig ativ e J o u rn ali s ts a n d o th er m ed ia g ro u ps, s h ow h ow s o m e

cli e n ts o f P an am a C it y -b ase d l a w ﬁ rm M oss a ck F on se ca & C o. a lle g ed ly w ere a b le t o

d od ge s a n ctio n s a n d a v o id t a xes.

T he W all S tr e et J o u rn al h asn ’t i n dep en den tly v eriﬁ ed t h e l e a ked m ate ria l. M oss a ck

F on se ca s a id t h is w eek t h at i t s o p era tio n s w ere “ b ey o n d r e p ro ach ” a n d i t h as n ev er

b een a cc u se d o r c h arg ed w it h c rim in al w ro n gd oin g.

T he e m erg en ce o f a t a x s c a n dal i n P an am a “ is n o s u rp ris e ,” s a id P asc a l S ain t-A m an s,

d ir e cto r f o r t a x a t t h e

O rg an iz a tio n f o r E co n om ic C oop era tio n a n d D ev elo p m en t, a n

in te rn atio n al b od y t h at h as h elp ed c o ord in ate t h e g lo b al ﬁ gh t a g ain st t a x e v a sio n .

“W e s e e v ery s ig n iﬁ ca n t p ro g re ss t o w ard t r a n sp are n cy f r o m a ll t a x h av en s… ex ce p t

P an am a a n d V an uatu ,” h e s a id .

G overn m en ts a cro ss t h e a d va n ce d w orld r e v v ed u p t h eir c ra ck d ow n a g ain st t a x

av o id an ce a n d e v a sio n i n t h e w ake o f t h e l a st d eca d e’s ﬁ nan cia l c ris is a n d g re a t

re ce ss io n , d riv en b y t h e n eed t o c lo se g ap in g b u dget h ole s a n d r e sp on d t o a s e rie s o f

sc a n dals i n vo lv in g l e a ked d ocu m en ts .

O th er r e ce n t l e a k s h av e i n vo lv ed H SBC Hold in gs P LC ’s p riv a te b an k i n S w it z e rla n d,

w hic h i s a lle g ed t o h av e p ro vid ed s e rv ic e s f o r t a x e v a d ers . T he b an k s a id a t t h at t im e

th at i t s S w is s b u sin ess h ad b een “ o verh au le d .” A noth er c a ch e o f d ocu m en ts i n vo lv ed

w ay s L u xem bou rg h elp ed m ult in atio n al c o m pan ie s t o l o w er t h eir t a x b ills . 6/11/2020 Tax-Haven Crackdown Leads to Whack-a-Mole - WSJ

https://www .wsj.com/articles/tax-haven-crackdown-leads-to-whack-a-mole-1459879228 3/5

The s u sta in ed c la m pdow n h as e n co u ra g ed

p eo p le t o l o ok a t a lt e rn ativ e t a x h av en s

“fu rth er a ﬁ eld a n d e v en m ore e x o tic ,” s a id

M arc S an ders , a b oard m em ber o f i n te rn atio n al

ta x a d vis o ry ﬁ rm T axa n d.

Sw it z e rla n d, L u xem bou rg a n d o th er

ju ris d ic tio n s h av e c o m e u n der s u sta in ed

p re ss u re f r o m a s w ath o f p ostc ris is l e g is la tio n

on b oth s id es o f t h e A tla n tic . T he U .S .

go vern m en t l e d t h e c h arg e i n 2 0 10 w it h i t s

F ore ig n A cc o u n t T ax C om pli a n ce A ct, o r

FA TCA , w hic h r e q u ir e s f o re ig n ﬁ nan cia l i n stit u tio n s t o r e p ort i d en tit ie s o f t h eir

A m eric a n c u sto m ers a n d a n y a ss e ts t h ey h old .

T hat h as l e d t o a s e rie s o f s e tt le m en ts b etw een U .S . a u th orit ie s a n d S w is s b an ks.

T he E uro p ea n U nio n q u ic k ly f o llo w ed s u it , s u cce ss fu lly p re ss u rin g c o u n tr ie s i n clu din g

Sw it z e rla n d a n d L u xem bou rg t o s h are i n fo rm atio n o n a cc o u n ts h eld b y t h eir c it iz e n s

ab ro ad . L ast s u m mer t h e E U “ n am ed a n d s h am ed ” 3 0 n on -c o -o p era tiv e t a x

ju ris d ic tio n s, b ase d o n d ata f r o m i n div id u al E U c o u n tr ie s.

“ E ven Br it is h j u ris d ic tio n s a re u n der p re ss u re ,” s a id R on en P ala n , a C it y U niv ers it y o f

L on don p ro fe ss o r w ho h as w rit te n b ooks o n t a x h av en s. H e n am ed t h e C han nel I s la n ds,

w hic h i n clu de J ers e y a n d G uern se y.

By co n tr a st, “ P an am a i s i n dep en den t a n d n ot t r y in g t o c o m pete w it h t h e o th ers o n

su ppose d ly c le a n in g u p i t s a ct,” M r. P ala n s a id .

M ORE O N T H E P A N AM A P A PE R S

Ic e la n d P re m ie r Q uit s A ft e r L ea k•

P an am a P ap ers S ca n dal a t a G la n ce•

5 T hin gs t o K now A bou t O sh ore C en te rs•

B ig B an ks A re T op U se rs o f O sh ore S erv ic e s•

S ecre t A cco u nts B ack i n t h e S potlig h t• 6/11/2020 Tax-Haven Crackdown Leads to Whack-a-Mole - WSJ

https://www .wsj.com/articles/tax-haven-crackdown-leads-to-whack-a-mole-1459879228 4/5

Mr. S ain t-A m an s s a id P an am a, w hic h i s n ’t a n O EC D m em ber, h as d ra g ged i t s f e et o n

re ce n t p oli c y i n it ia tiv es, i n clu din g t h e e x ch an ge b y n atio n al a u th orit ie s o f b an k-

a cc o u n t i n fo rm atio n o n r e q u est o r a u to m atic a lly , a n d a m ult ila te ra l c o n ven tio n o n

m utu al a ss is ta n ce i n t a x m atte rs . “ T hey d ecid ed o n e w ay o r a n oth er t o r e m ain q u it e a

s e cre tiv e j u ris d ic tio n ,” h e s a id .

P an am an ia n g o vern m en t o ﬃ cia ls c o u ld n’t b e r e a ch ed t o c o m men t.

In a le n gth y s ta te m en t o n li n e, M oss a ck F on se ca p oin te d o u t t h at t h e F in an cia l A ctio n

T ask F orc e — an i n te rg o vern m en ta l b od y s e t u p i n 1 9 89 t o h elp c o m bat m on ey

la u n derin g— re m oved P an am a f r o m i t s l i s t o f u n co op era tiv e j u ris d ic tio n s i n F eb ru ary .

T he F A TF a t t h e t im e p ra is e d P an am a f o r “ s ig n iﬁ ca n t p ro g re ss ” i n a d dre ss in g s tr a te g ic

d eﬁ cie n cie s i n c o m batt in g m on ey l a u n derin g a n d t e rro ris m ﬁ nan cin g. A n F A TF

sp okesm an c o u ld n’t b e r e a ch ed t o c o m men t.

F re n ch t a x a u th orit ie s, h ow ev er, o n T uesd ay re sto re d P an am a t o t h eir l i s t o f

n on co op era tiv e c o u n tr ie s i n t h e w ake o f t h is w eek ’s r e p orts .

O th er j u ris d ic tio n s m ay b e b en eﬁ tin g f r o m t h e c la m pdow n o n t r a d it io n al t a x h av en s i n

t h e W est.

M r. P ala n s a id h e s e es “ sig n s o f m ovem en t t o A sia ” i n d ata o n g lo b al b an k s a v in gs a n d

dep osit s p u bli s h ed b y t h e B an k f o r I n te rn atio n al S ett le m en ts , a c e n tr a l b an k f o r c e n tr a l

b an ks. “ T he s h if t i s c le a rly t o S in gap ore , D ubai a n d H on g K on g,” h e s a id .

Still, g lo b al e ﬀ orts t o c o m bat t a x e v a sio n h av e e n co u ra g ed m ore t h an 5 0 0,0 00 p eo p le

t o e x p ose o ﬀ sh ore a cc o u n ts i n r e ce n t y ea rs , a n d y ie ld ed a n a d dit io n al € 50 b illi o n ( $ 57

b illi o n ) o f t a xes, e stim ate s M r. S ain t-A m an s. 6/11/2020 Tax-Haven Crackdown Leads to Whack-a-Mole - WSJ

https://www .wsj.com/articles/tax-haven-crackdown-leads-to-whack-a-mole-1459879228 5/5

And t h e p re ss u re i s n ’t l e tt in g u p. I n N ovem ber t h e l e a d ers o f t h e w orld ’s 2 0 l a rg est

e co n om ie s p le d ged t o o verh au l g lo b al s ta n dard s t o c ra ck d ow n o n t a x e v a sio n . T he

D utc h a n d U .K . g o vern m en ts h av e i n dic a te d t h ey w ill i n tr o d u ce p u bli c r e g is te rs

s h ow in g t h e u lt im ate o w ners o f c o m pan ie s. A nd t h e E U a im s t o p ro d u ce i t s o w n “ b la ck

li s t” o f u n co op era tiv e t a x h av en s.

Bu t s ig n in g a g re em en ts d oesn ’t y et m ea n v ic to ry c a n b e d ecla re d o ver t a x h av en s,

e x p erts s a id .

“E ven i n a n cie n t R om e t a x-fr e e z o n es e x is te d ,” M r. S an ders s a id . “ T here w ill p ro b ab ly

a lw ay s b e c o u n tr ie s w hic h a re w illi n g t o c o op era te w it h s u ch s tr u ctu re s.”

W rit e to T om F air le ss a t to m .f a ir le ss @ wsj.c o m

A ppea re d i n t h e A pril 6 , 2 0 16 , p rin t e d it io n a s ' T ax H aven C ra ck d ow n L ea d s t o G lo b a l

W ha ck -a -M ole .'

T his c o py i s f o r y o u r p ers o n al, n on -c o m merc ia l u se o n ly . T o o rd er p re se n ta tio n -r e a d y c o p ie s f o r d is trib u tio n t o y o u r c o lle a g u es, c lie n ts o r c u sto m ers v is it

h tt p s:/ / w ww.d jr e p rin ts .c o m .