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

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4:1 7 P M E ST A PR 5 , 2 0 16

Y ou r g u id e t o t h e P an am a P ap ers .

W hat a re t h e P an am a p ap ers ?

A h u ge b atc h o f r e p orts l a te S u n day l i n ked 1 4 0 p u bli c ﬁ gu re s, e x ecu tiv es a n d c e le b rit ie s a ro u n d t h e w orld t o o verse a s

asse ts i n o ffs h ore t a x h av en s ( h tt p :/ / w ww.w sj.c o m /a rtic le s/ta x -h av en- cra ck d ow n- le a d s-t o -w hack -a -m ole -

14 59 879 2 28) r a n gin g f r o m t h e Br it is h V ir g in I s la n ds t o P an am a. I c e la n d’s p rim e m in is te r h as r e sig n ed

(h tt p :/ / w ww.w sj.c o m /a rtic le s/ic e la n ds-p rim e-m in is te r-s ig m un du r-d av id -g u n nla u gsso n -r e sig n s-1 4 59 874 52 8) ,

w hile R ussia n P re sid en t V la d im ir Pu tin ’s s p ok esm an ( h tt p :/ / w ww.w sj.c o m /a rtic le s/ le a k ed -file s-d eta ili ng -

offs h ore -a cco u n ts -s p ark -a n gry -r e a ctio n -1 4 59 776 38 1) d eﬂ ecte d c rit ic is m . M ore p oli t ic a l p re ss u re i s l i k ely t o f o llo w .

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Ho w d id t h is c o m e t o l ig ht?

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Is t h is a ctiv it y i lle g al?

W hat w ere s o m e h ig h-p ro file a lle g atio ns?

W hy P an am a?

M ore t h an 3 70 j o u rn ali s ts f r o m 7 6 co u n tr ie s g o t a cce ss t o m illi o n s o f r e co rd s f r o m a P an am an ia n l a w f ir m

(h tt p :/ / w ww.w sj.c o m /a rtic le s/ta x -h av en- cra ck d ow n- le a d s-t o -w hack -a -m ole -1 4 59 879 2 28) th at s p ecia li z e d i n

o ﬀ sh ore h old in g c o m pan ie s, a cc o rd in g t o t h e In te rn atio n al C on so rtiu m o f I n vestig a tiv e J ou rn ali s ts . T he I C IJ

p u bli s h ed a g ro u p o f s to rie s ( h tt p s:/ / p an am ap ap ers.i c ij.o rg /) b ase d o n t h e r e co rd s, a lo n gsid e o th er r e p orts f r o m

se le ct n ew s o rg an iz a tio n s. 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 c o n te n ts o f t h e r e co rd s.

T he P an am an ia n l a w f ir m , M ossa ck F on se ca ( h tt p :/ / w ww.w sj.c o m /a rtic le s/p an am a-la u n ch es-o w n-

in vestig a tio n -in to -m ossa ck -fo n se ca -la w -fir m -1 4 59 80 54 21) , d en ie s w ro n gd oin g.

H av in g a n o ﬀ sh ore c o m pan y g en era lly i s n ’t i lle g al, b u t s o m e o f t h e i n te rm ed ia rie s h av e p ro te cte d t h eir c li e n ts b y h id in g

w ea lt h o r s u sp ic io u s t r a n sa ctio n s i n t a x h av en s, t h e m ed ia o u tle ts s a id . F or p oli t ic a l ﬁ gu re s, t h e m illi o n -d olla r q u estio n i s

h ow t h e f u n ds w ere o b ta in ed a n d u se d .

C lo se f r ie n ds o f M r. P utin ( h tt p :/ / w ww.w sj.c o m /a rtic le s/ le a k ed -file s-d eta ili ng -o ffs h ore -a cco u n ts -s p ark -

an gry -r e a ctio n -1 4 59 776 38 1) w ere i n vo lv ed i n t r a n sa ctio n s a m ou n tin g t o a t l e a st $ 2 b illi o n , a cc o rd in g t o t h e r e p orts . Bu t

th at’s n ot a ll. R ela tiv es o f C hin a’s P oli t b u ro S ta n din g C om mit te e a n d P re sid en t X i J in pin g

(h tt p :/ / w ww.w sj.c o m /a rtic le s/ le a k ed -file s-d eta ili ng -o ffs h ore -a cco u n ts -s p ark -a n gry -r e a ctio n -1 4 59 776 38 1)

w ere c o n necte d t o o ﬀ sh ore c o m pan ie s, w hile Ic e la n d’s P rim e M in is te r S ig m un du r D av id G un nla u gsso n

(h tt p :/ / w ww.w sj.c o m /a rtic le s/ic e la n ds-p rim e-m in is te r-s ig m un du r-d av id -g u n nla u gsso n -r e sig n s-1 4 59 874 52 8)

w as b la m ed f o r n ot d is c lo sin g p artia l o w ners h ip o f a Br it is h V ir g in I s la n ds c o m pan y.

P an

a m a h as l o n g b een k n ow n a s a k ey j u ris d ic tio n f o r o ﬀ sh ore c o rp ora tio n s, b eca u se o f i t s w ell- e sta b li s h ed l e g al s y ste m a n d

ban kin g i n fr a str u ctu re . W hen m ore t h an 7 0 S w is s b an ks c o n fe ss e d t o t h e U .S . t h at t h ey e n co u ra g ed t a x e v a sio n , m an y s a id

t h ey p artic ip ate d i n s c h em es u sin g P an am an ia n c o rp ora tio n s.

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Is t h is s o rt o f a ctiv it y o n t h e r is e , o r d eclin in g ?

So p eo p le c a n n o l o ng er h id e a ss e ts i n o ffs h o re a cco unts ?

A re p ro se cu to rs l o okin g i n to t h is ?

W hat a b out i n l e ss -d eve lo p ed c o untr ie s?

F ig u re s c o m pile d b y I C IJ s h ow a s h arp d ecre a se i n t h e u se o f s u ch o ﬀ sh ore v eh ic le s i n r e ce n t y ea rs . W ash in gto n h as l e v ie d

h u ge ﬁ nes o n i n te rn atio n al b an ks f o r e v a d in g s a n ctio n s a n d p oor c o m pli a n ce , a n d i n t h e U .S . i t h as g o tte n h ard er a n d h ard er

to h id e m on ey f r o m t h e I R S i n o ﬀ sh ore a cc o u n ts . S in ce 2 0 09, m ore t h an 5 4 ,0 00 U .S . t a xp ay ers h av e p aid m ore t h an $ 8 b illi o n

to r e so lv e c a se s i n vo lv in g s e cre t o ﬀ sh ore a cc o u n ts . Bo th t h e U .S . a n d t h e i n te rn atio n al c o m mun it y h av e p ro je cts t o

a u to m atic a lly t r a n sfe r ﬁ nan cia l d ata t h at w ill e x p ose u n decla re d o ﬀ sh ore a cc o u n ts .

W hile i t h as b eco m e m uch h ard er t o h id e a ss e ts f r o m t a x a u th orit ie s, b oth i n t h e U .S . a n d a b ro ad , i t ’s s till p oss ib le t o k ee p

ca sh h id den f r o m s p ou se s, c re d it o rs a n d o th ers . F or e x a m ple , i f a U .S . t a xp ay er h id es a ss e ts i n a t a x h av en f r o m h is e x -

sp ou se , h e w ill h av e t o r e p ort t h e a cc o u n t o n h is t a x r e tu rn . Bu t h is s p ou se m ay n ot b e a b le t o o b ta in a cce ss t o t h e a ss e ts

b eca u se o f t a x-h av en l a w s t h at f r u str a te d is c o very a n d r e co very .

T he U .S . J u stic e D ep artm en t ( h tt p :/ / w ww.w sj.c o m /a rtic le s/ju stic e -d ep artm en t-r e v ie w in g-p an am a-

d ocu m en ts -fo r-p ote n tia l- e v id en ce -o f- c o rru ptio n -1 4 59 79 10 29) s a y s i t i s r e v ie w in g t h e d ocu m en ts t o s e e i f t h ey

co n ta in e v id en ce o f c o rr u ptio n t h at c o u ld b e p ro se cu te d . S im ila r i n qu ir ie s h av e b een o p en ed i n t h e U .K ., t h e N eth erla n ds a n d

els e w here . A nd P an am a’s t o p p ro se cu to r h as l a u n ch ed a n i n vestig atio n i n to t h e ﬁ rm . S om e o f t h e p eo p le c lo se t o M r. P utin

w ho w ere n am ed i n t h e r e p orts a lr e a d y h ad b een s a n ctio n ed b y t h e T re a su ry D ep artm en t f o llo w in g M osc o w ’s

i n te rfe re n ce i n U kra in e.

N atio n s w it h l i t t le o r n o p oli t ic a l o p posit io n a n d p ow erfu l s ta te -c o n tr o lle d m ed ia m ay s e e f e w c h an ges f o llo w in g t h e l e a k s,

e v en i f j o u rn ali s ts p u rs u e f o llo w -u p s to rie s. O th er c o u n tr ie s m ay ﬁ nd t h eir o ﬃ cia ls ’ o ﬀ sh ore h old in gs w ere n ’t i m pro p er.

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W ill a n y p olic ie s c h an g e?

M ORE O N T H E ‘ P A N AM A P A PER S’ S C A N DA L

Ic e la n d ’s P rime M in is te r S ig mund ur D av id G unnla u g ss o n R esig ns A ft e r R ele ase o f ‘ P an am a P ap ers ’

(h tt p :/ / w ww.w sj. c o m/ artic le s/ ic e la n d s-p rim e-m in is te r- s ig m und ur- d av id -g un nla u g ss o n-re sig ns-14 59 874 52 8 ?

mo d=b rie fly _mor e_o n)

Ta x-H av e n C ra ck d ow n L e ad s t o W hack -a -M ole ( h tt p :/ / w ww.w sj. c o m/ artic le s/ ta x-h av e n -c ra ck d ow n-le ad s-to -w hack -a -

mo le -14 59 879 228 ?mo d=b rie fly _m ore _ on)

P an ama P ap ers : B ig gest B an ks A re T o p U se rs o f O ffs h o re S erv ic e s ( h tt p :/ / w ww.w sj. c o m/ artic le s/ b ig g est- b an ks-a re -to p -

use rs -o f- o ffs h o re -s e rv ic e s-14 59 817 16 5?m od =b rie fly _ m ore _ on)

P an ama L aw F ir m Open s O ffs h o re A cco unts f o r O ffic ia ls W orld -W id e ( h tt p :/ / w ww.w sj. c o m/ artic le s/p an am a-la w -fir m -

op en s-o ffs h o re -a cco unts -fo r- o ffic ia ls -w orld -w id e-14 59 80 1116 pan ?m od =b rie fly _ m ore _ on)

V id eo : P an ama P ap ers : T h e B ig P ic tu re ( h tt p :/ / w ww.w sj. c o m/ vid eo /p an am a-p ap ers -th e-b ig -p ic tu re /8 85C 17 9 5-A A 90 -

40 D 8-B 480 -1E 0 81F 5 D 9CC 2.h tml ?m od =b rie fly _ m ore _ on)

M ORE A T A G LA N CE

Pre sid en t B ara ck O bam a m en tio n ed t h e P an am a p ap ers T uesd ay w hile d is c u ss in g m ult in atio n al c o m pan ie s’ e ffo rts t o

a v o id t a x es ( h tt p :/ / w ww.w sj.c o m /a rtic le s/p re sid ent -o b am a-p ra is e s-n ew -in versio n -r u le s-1 4 59 873 9 77 ) , a n d t h e

is s u e w ill l i k ely g et a l o t m ore a tte n tio n a t i n te rn atio n al g ath erin gs s u ch a s t h e G ro u p o f 2 0 b ig gest e co n om ie s. F u rth er

re p orts a n d d is c lo su re s c o u ld h elp g en era te a w av e o f p u bli c o u tc ry w it h e ﬀ orts t o t ig h te n l a w s a n d p ro ce d u re s a n d p erh ap s

to r e p la ce m ore o ﬃ cia ls t a in te d b y t h e s c a n dal.

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W hat F uele d S eco nd -Q uarte r U .S . G ro w th F ir s t- Q uarte r U .S . G ro w th

F o urth -Q uarte r U .S . G DP G ro w th 3 % Thir d -Q uarte r U .S . G ro w th

A T A G LA N CE A T A G LA N CE