The US on the other hand refused to sign on to the Common Reporting Standard set up by the Organisation for Economic Co-operation and Development, alongside Vanuatu and Bahrain.[414] This means the US receives tax and asset information for American assets and income abroad, but does not share information about what happens in the United States with other countries, which in other words means that the United States has become attractive as a tax haven.


Angola's $5 billion sovereign wealth fund, the Fundo Soberano de Angola (FSDEA), promotes itself as a vehicle of development and prosperity for Angola. The FSDEA is headed by José Filomeno de Sousa "Zenu" dos Santos, the son of President José Eduardo dos Santos, who has been in power since 1979. Funded by the state-owned petroleum company Sonangol, the FSDEA has critics who say that its record-keeping is murky and that it seems to engage in nepotism and cronyism.[443]
The Pacific coastline is extended by the Azuero Peninsula and the Gulf of Panama and by numerous headlands and bays, whereas the largest embayment on the Caribbean side is Chiriquí Lagoon. The Pacific coastline is more indented and irregular, and its continental shelf is much wider than that on the Atlantic side. In addition, most of the republic’s more than 1,600 islands lie off its Pacific coast; they include the Perlas Archipelago (Pearl Islands) and the islands of Taboga, Cébaco, Parida, Jicarón, and Coiba, the largest. The principal archipelagoes off the Caribbean coast are those of Bocas del Toro and San Blas.
A diverse multicultural city of almost 1.3 million, Panama City offers a lot more than an up-close view of the Canal. Shantytowns slink up alongside shiny high-rise condos. The Old City is an atmospheric labyrinth of churches, plazas and palaces. Fifteen miles from downtown Panama City, Soberania National Park is an excellent destination for hiking and birding. For a fascinating look at the canal, take a taxi or local bus to Miraflores Locks Visitor Center and look down on the traffic below.
Mossack Fonseca also ran six businesses for Rami Makhlouf, cousin of Syrian president Bashar al-Assad, despite US sanctions against him.[101] Internal Mossack Fonseca documents show that in 2011 Mossack Fonseca rejected a recommendation by their own compliance team to sever ties to Mr. Makhlouf. They agreed to do so only months later. The firm has said it never knowingly allowed anyone connected with rogue regimes to use its companies.[99]

Rami Makhlouf, a maternal cousin of Bashar Al-Assad, was worth an estimated $5 billion before the Syrian Civil War, and had control of 60% of the economy. He was subject to sanctions by the United States and the European Union, and controlled Syria's oil and telecommunications business.[383] The US Treasury charged that Pangates, a company registered to him, supplied the Assad government with a thousand tonnes of aviation fuel.[384] However, the Makhloufs were able to continue to operate via Panama shell companies,[103] registered in the British Virgin Islands, and so not subject to US law – however, on May 9, 2011, the EU issued its own sanctions, and these were extended by an order in council to the British Virgin Islands in July 2011.[385] Mossack Fonseca decided September 6 to resign from Makhlouf's companies. By then, Makhlouf had already cut ties with his bank. HSBC told the law firm that the Swiss authorities had frozen Makhlouf's accounts, and that "they have had no contact with the beneficial owner of this company since the last 3 months".[385]
Panama enjoys a lively mix of cultural influences, expressed in the country’s cuisine, artwork, music, and literature. Its capital, Panama City, is located on the Pacific coast just east of the canal. A cosmopolitan city where skyscrapers tower above whitewashed bungalows, it enjoys a handsome setting and a growing importance as a commercial and financial services centre for the region. However, its economic progress has been hampered periodically by environmental problems and political turmoil.
The Irish Times newspaper handled the Irish component of the leak. Prominent Irish names listed included golfer Pádraig Harrington, property developer Sean Mulryan and the manager of Irish rock group U2, Paul McGuinness.[203] The lists also included Stanley Watson, a senior partner of Ireland's largest tax-law firm, Matheson, who have led the creation of many of the Irish corporate tax management tools used by US multinationals in Ireland to avoid billions in US taxes.[204] The list also included Irish Fine Gael political advisor, Frank Flannery.[205]
Mossack Fonseca documents provide new insight and confirmation for a previously-litigated tax case where an offshore company transferred its registration to avoid paying capital gains tax in Uganda.[482] The documents show that Heritage Oil and Gas Limited (HOGL) knew in advance of a capital gains tax that Uganda planned to enact. HOGL was then operating in Uganda and planned to sell half its Ugandan assets. It "urgently"[483] moved its registration from the Bahamas to Mauritius to avoid the tax.[482] Mauritius has a double taxation agreement with Uganda, meaning that HOGL would pay tax in only one of the two countries.[482] But Mauritius does not have a capital gains tax, so by moving there Heritage reduced its capital gains tax to zero.[484] Emails clearly show that this was the reason for the transfer, although company attorneys deny it.[482]
Meanwhile, Noriega's regime had fostered a well-hidden criminal economy that operated as a parallel source of income for the military and their allies, providing revenues from drugs and money laundering. Toward the end of the military dictatorship, a new wave of Chinese migrants arrived on the isthmus in the hope of migrating to the United States. The smuggling of Chinese became an enormous business, with revenues of up to 200 million dollars for Noriega's regime (see Mon 167).[30]
^ Jump up to: a b Michael Daly (April 5, 2016). "Polynesian 'Rock' That Made Millions From Panama Papers' Crooks: How Niue, a coral outcropping with just 1,190 residents, rolled out the welcome mat for Mossack Fonseca, the law firm at the center of the massive records leak—and made a tidy profit". Daily Beast. Archived from the original on May 2, 2016. Retrieved April 26, 2016.
A commonly relayed legend in Panama is that there was a fishing village that bore the name "Panamá", which purportedly meant "an abundance of fish", when the Spanish colonizers first landed in the area. The exact location of the village is unknown. The legend is usually corroborated by Captain Antonio Tello de Guzmán's diary entries, who reports landing at an unnamed village while exploring the Pacific coast of Panama in 1515; he only describes the village as a "same small indigenous fishing town". In 1517, Don Gaspar de Espinosa, a Spanish lieutenant, decided to settle a post in the same location Guzmán described. In 1519, Pedrarias Dávila decided to establish the Spanish Empire's Pacific port at the site. The new settlement replaced Santa María La Antigua del Darién, which had lost its function within the Crown's global plan after the Spanish exploitation of the riches in the Pacific began.
The government of Rwanda uses an offshore company to lease a private jet for its senior politicians.[441] Leaked documents show that Brigadier-General Emmanuel Ndahiro, using a London address, become a director of a British Virgin Islands company, Debden Investments Ltd. in 1998, owner of a jet aircraft. Ndahiro, a close advisor of president Paul Kagame, was then spokesman for Kagame's military.[441] According to the Panama Papers the owner of the company was Hatari Sekoko, who ran a number of real estate and hotel ventures such as the Marriott in Kigali.[439]
The military dictatorship, at that time[when?] supported by the United States[citation needed], perpetrated the assassination and torture of more than one hundred Panamanians and forced at least a hundred more dissidents into exile. (see Zárate 15).[31] Noriega also began playing a double role in Central America under the supervision of the CIA.[citation needed] While the Contadora group conducted diplomatic efforts to achieve peace in the region, Noriega supplied Nicaraguan Contras and other guerrillas in the region with weapons and ammunition.[27]
In Panama, nature is all about discovery. Explore the ruins of Spanish forts on the Caribbean coast or boat deep into indigenous territories in a dugout canoe. Wildlife is incidental: a resplendent quetzal on the highland trail, an unruly troupe of screeching howler monkeys outside your cabin or a breaching whale that turns your ferry ride into an adrenaline-filled event. Adventure tourism means zipping through rainforest canopies, swimming alongside sea turtles or trekking to sublime cloud-forest vistas. One small tropical country with two long coasts makes for a pretty big playground.
The dominant feature of Panama's geography is the central spine of mountains and hills that forms the continental divide. The divide does not form part of the great mountain chains of North America, and only near the Colombian border are there highlands related to the Andean system of South America. The spine that forms the divide is the highly eroded arch of an uplift from the sea bottom, in which peaks were formed by volcanic intrusions.
While no standard official definition exists, The Economist and the International Monetary Fund describe an offshore financial center, or tax haven, as a jurisdiction whose banking infrastructure primarily provides services to people or businesses who do not live there, requires little or no disclosure of information when doing business, and offers low taxes.[32][33]
The dominant feature of Panama's geography is the central spine of mountains and hills that forms the continental divide. The divide does not form part of the great mountain chains of North America, and only near the Colombian border are there highlands related to the Andean system of South America. The spine that forms the divide is the highly eroded arch of an uplift from the sea bottom, in which peaks were formed by volcanic intrusions.

Sri Lankan Finance Minister Ravi Karunanayake said his panel will investigate Sri Lankan names that come up in the Panama Papers, as well as the 46 who appear in the 2013 Offshore Leaks, according to the Daily Mail, since earlier leadership apparently did not do so. The country has many large outstanding foreign loans taken out under the administration of former president Mahinda Rajapakse, and the current government recently had to obtain a US$1.5 billion IMF bailout. Rajapakse has denied diverting funds. The current government came to power in January 2016 on an anti-corruption platform.[382]
The city was founded on August 15, 1519, by Pedro Arias de Ávila, also known as Pedrarias Dávila. Within a few years of its founding, the city became a launching point for the exploration and conquest of Peru and a transit point for gold and silver headed back to Spain through the Isthmus. In 1671 Henry Morgan with a band of 1400 men attacked and looted the city, which was subsequently destroyed by fire. The ruins of the old city still remain and are a popular tourist attraction known as Panamá la Vieja (Old Panama). The city was rebuilt in 1673 in a new location approximately 5 miles (8 km) southwest of the original city. This location is now known as the Casco Viejo (Old Quarter) of the city.
On October 22, 2016, in the midst of a state visit to Germany, Varela told journalist Jenny Pérez, of Deutsche Welle that there had been "progress" in transparency and many agreements to exchange tax information, and that tax evasion was a global problem. Asked about his ties with Ramón Fonseca Mora, managing partner of the firm Mossack Fonseca, he acknowledged that he is a friend.[145]
It’s time to wave farewell to Panama City and get out into nature! Breathe in the fresh air of parks, islands, rainforests, and rural villages. This Panama City jungle tour will turn its back on bustling city life and welcome the rainforest in with open arms – come along for the ride!You’ll be picked up from the American Trade Hotel in the historic district, and the first part of this Panama City wildlife tour will take you past Panama Canal’s famous Culebra Cut and towards Soberania National Park, Lake Gatun, and the Chagres River.Known for its huge variety of birds (the Audubon Society's annual bird count once spotted over 500 species in 24 hours!), Soberania National Park is full of wildlife and is a wonderful place to watch for monkeys, sloths, eagles, and plenty more. There’s no denying that this spot in the Panama jungle really is the jackpot for animal lovers. You’ll also catch a boat out to Monkey Island – doesn’t take a genius to guess what you’ll find here! Keep your eyes peeled to spot a number of different species of monkey.Next, you will continue your tour up the Chagres River to an authentic Indian village. This will be an opportunity for you to get in touch with the local community, and learn all about their culture, customs, history, and more. As part of the visit, you’ll take a short hike along the trails through the rainforest to learn about how the local plants are used for medicinal purposes. With your local guide by your side through this adventure, you’ll learn plenty about the culture around you.After your Panama jungle experience of a life time, you’ll head back into the city (perhaps a little begrudgingly…) where your local guide will drop you back off at the American Trade Hotel. During the rainy season in Panama, we are unable to reach the Indian Village for the Panama City Jungle Experience. However, we can offer travelers a nice walk in the jungle as a substitute. This alternate option will be effective from early October to late December.
The rainy season usually starts off in mid-May. At that point sporadic rain showers begin during the afternoon and evening hours. As the days pass the rain increases in duration, amounts, and evenings are full of wonderful thunderstorms and beautiful lightening. In the mountain areas flash flooding can suddenly occur during these months. During the rainy season day time temperatures are about 10 to 15 degrees cooler than the dry season but the humidity is much higher. The rainiest month is November but by mid-December the rain is completely gone in most of Panama on the Pacific side.
Public education began in Panama soon after it seceded from Colombia in 1903. The first efforts were guided by an extremely paternalistic view of the goals of education, as evidenced in comments made in a 1913 meeting of the First Panamanian Educational Assembly, "The cultural heritage given to the child should be determined by the social position he will or should occupy. For this reason education should be different in accordance with the social class to which the student should be related." This elitist focus changed rapidly under US influence.[82]
The highest point in the country is the Volcán Barú, which rises to 3,475 metres (11,401 feet). A nearly impenetrable jungle forms the Darién Gap between Panama and Colombia where Colombian guerrillas and drug dealers operate and sometimes take hostages. This and unrest, and forest protection movements, create a break in the Pan-American Highway, which otherwise forms a complete road from Alaska to Patagonia.
The city proper has approximately 880,691 inhabitants in 23 boroughs.[25] The inhabitants of Panama City are commonly referred to as capitalinos and include large numbers of Afro-Panamanians, mestizos, and mulattos, with notable white and Asian minorities.[26] There is a great deal of cultural diversity within the city, which manifests itself in the wide variety of languages commonly spoken, such as German, Portuguese, French, Arabic, Chinese, Hebrew and English, in addition to Spanish.[18]
Lucien Ebata, a Kinshasa businessman, runs Orion Group SA, registered in the Seychelles in 2009 by Mossack Fonseca through the Luxembourg-based Figed, according to the Panama Papers.[444] Ebata, who receives a salary of a million dollars, does a business volume of around a billion, and counts both Shell and the Société nationale des pétroles du Congo (SNPC) among his customers.[444]

Panama's roads, traffic and transportation systems are generally safe, though night driving is difficult and in many cases, restricted by local authorities. This usually occurs in informal settlements.[62] Traffic in Panama moves on the right, and Panamanian law requires that drivers and passengers wear seat belts.[62] Highways are generally well-developed for a Latin American country.
The city's main retail center was the Panama City Mall until it was permanently closed after Hurricane Michael. It may be turned into an outdoor mall, but this has not been officially confirmed. Another local retail center is the Bay City Pointe, on FL 368 (locally known as 23rd St.), which is still under construction but partially open. Pier Park, on the beach across the Hathaway Bridge spanning St. Andrews Bay, is a third local retail center.
Samina Durrani, mother of Shebaz Sharif's second wife, and Ilyas Mehraj, brother of his first, also figure in the documents. Habib Waqas Group/Ilyas Mehraj is listed as a shareholder with 127,735 shares in Haylandale Limited, registered July 24, 2003 in the Bahamas. Mehraj has denied knowing anything about "any company whether incorporated in the Commonwealth of Bahamas or anywhere else under the name: Haylandale Ltd."[366] Rainbow Limited, the newest of the three offshore companies owned by Samina Durrani, was registered September 29, 2010 in the British Virgin Islands (BVI).[366] Armani River Limited, registered in the Bahamas on May 16, 2002, describes its assets as "property in London, which is not currently rented."[366] Assets of Star Precision Limited, registered in BVI May 21, 1997, were reported as "cash as the investment portfolio. We are also holding 1,165,238 shares in Orix Leasing Pakistan Limited."[366]
In 1671, the privateer Henry Morgan, licensed by the English government, sacked and burned the city of Panama – the second most important city in the Spanish New World at the time. In 1717 the viceroyalty of New Granada (northern South America) was created in response to other Europeans trying to take Spanish territory in the Caribbean region. The Isthmus of Panama was placed under its jurisdiction. However, the remoteness of New Granada's capital, Santa Fe de Bogotá (the modern capital of Colombia) proved a greater obstacle than the Spanish crown anticipated as the authority of New Granada was contested by the seniority, closer proximity, and previous ties to the viceroyalty of Lima and even by Panama's own initiative. This uneasy relationship between Panama and Bogotá would persist for centuries.
In 2010, HOGL sold its 50 percent stake in Ugandan oil fields to Tullow Uganda for US$1.5 billion.[482] The Uganda Revenue Authority (URA) applied a US$404 million capital gains tax on the transaction and HOGL refused to pay.[482] A four-year battle in various courts ensued. Ugandan officials, including President Yoweri Museveni and the then-URA Commissioner-General Allen Kagina demanded the payment from Tullow, threatening not to renew its exploration licenses, which were about to expire, unless it deducted the tax from its payment to Heritage and remitted it to the URA.[482] Eventually Tullow made a down payment and deposited the rest in escrow, pending legal resolution of its appeal, which came in 2013. Tullow also successfully sued HOGL to recover taxes they had paid on its behalf.[482]

Isabel Saint Malo de Alvarado, Vice President of Panama, said in an op-ed piece published April 21 in The Guardian that President Juan Carlos Varela and his administration have strengthened Panama's controls over money-laundering in the twenty months they have been in power, and that "Panama is setting up an independent commission, co-chaired by the Nobel laureate Joseph Stiglitz, to evaluate our financial system, determine best practices, and recommend measures to strengthen global financial and legal transparency. We expect its findings within the next six months, and will share the results with the international community."[131]
Mr. Cameron, whose father was a client of the Panamanian law firm, initially said he had not benefited from any “offshore funds,” only to confirm later that he and his wife had profited when they sold shares in an offshore trust for 30,000 pounds ($42,160) in 2010, the year he became prime minister. (The dividends they earned were declared and taxed, Mr. Cameron said.)
Perez Balladares ran as the candidate for a three-party coalition dominated by the Democratic Revolutionary Party (PRD), the erstwhile political arm of military dictatorships. Perez Balladares worked skillfully during the campaign to rehabilitate the PRD's image, emphasizing the party's populist Torrijos roots rather than its association with Noriega. He won the election with only 33 percent of the vote when the major non-PRD forces splintered into competing factions. His administration carried out economic reforms and often worked closely with the US on implementation of the Canal treaties.[citation needed]
Diamond Ocean Enterprises, a Mossack Fonseca entity set up in 2005, reported its purpose as financial consulting to a Namibian diamond manufacturer and polisher.[209] According to the law firm's records, Deutsche Investment Consultants (Asia) Limited, a Mossack Fonseca company set up in the British Virgin Islands for the now-imprisoned Mafioso Vito Palazzolo by Wolf-Peter Berthold, a German banker based in Hong Kong, is a director of the firm. Its shareholders include Peter von Palace Kolbatschenko, Palazzolo's son, Berthold, and Giovanni Agusta.[209]
WikiLeaks spokesperson Kristinn Hrafnsson, an Icelandic investigative journalist who worked on Cablegate in 2010, said withholding some documents for a time does maximise the leak's impact, but called for full online publication of the Panama Papers eventually.[80] A tweet from WikiLeaks criticized the decision of the ICIJ to not release everything for ethical reasons: "If you censor more than 99% of the documents you are engaged in 1% journalism by definition."[81]
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