What has this to with us?

Dr Michael Benjamin,
Community Psychiatrist
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On 4 April 2013 17:29, Rick Duniec <[email protected]> wrote:

>
> http://www.guardian.co.uk/uk/2013/apr/03/offshore-secrets-offshore-tax-haven
>
> Millions of internal records have leaked from Britain's offshore financial
> industry, exposing for the first time the identities of thousands of
> holders of anonymous wealth from around the world, from presidents to
> plutocrats, the daughter of a notorious dictator and a British millionaire
> accused of concealing assets from his ex-wife.
>
> The leak of 2m emails and other documents, mainly from the offshore haven
> of the British Virgin Islands (BVI), has the potential to cause a seismic
> shock worldwide to the booming offshore trade, with a former chief
> economist at McKinsey estimating that wealthy individuals may have as much
> as $32tn (£21tn) stashed in overseas havens.
>
> In France, Jean-Jacques Augier, President François Hollande's campaign
> co-treasurer and close friend, has been forced to publicly identify his
> Chinese business partner. It emerges as Hollande is mired in financial
> scandal because his former budget minister concealed a Swiss bank account
> for 20 years and repeatedly lied about it.
>
> In Mongolia, the country's former finance minister and deputy speaker of
> its parliament says he may have to resign from politics as a result of this
> investigation.
>
> But the two can now be named for the first time because of their use of
> companies in offshore havens, particularly in the British Virgin Islands,
> where owners' identities normally remain secret.
>
> The names have been unearthed in a novel project by the Washington-based
> International Consortium of Investigative Journalists [ICIJ], in
> collaboration with the Guardian and other international media, who are
> jointly publishing their research results this week.
>
> The naming project may be extremely damaging for confidence among the
> world's wealthiest people, no longer certain that the size of their
> fortunes remains hidden from governments and from their neighbours.
>
> BVI's clients include Scot Young, a millionaire associate of deceased
> oligarch Boris Berezovsky. Dundee-born Young is in jail for contempt of
> court for concealing assets from his ex-wife.
>
> Young's lawyer, to whom he signed over power of attorney, appears to
> control interests in a BVI company that owns a potentially lucrative Moscow
> development with a value estimated at $100m.
>
> Another is jailed fraudster Achilleas Kallakis. He used fake BVI companies
> to obtain a record-breaking £750m in property loans from reckless British
> and Irish banks.
>
> As well as Britons hiding wealth offshore, an extraordinary array of
> government officials and rich families across the world are identified,
> from Canada, the US, India, Pakistan, Indonesia, Iran, China, Thailand and
> former communist states.
>
> The data seen by the Guardian shows that their secret companies are based
> mainly in the British Virgin Islands.
>
> Sample offshore owners named in the leaked files include:
>
> . Jean-Jacques Augier, François Hollande's 2012 election campaign
> co-treasurer, launched a Caymans-based distributor in China with a 25%
> partner in a BVI company. Augier says his partner was Xi Shu, a Chinese
> businessman.
>
> . Mongolia's former finance minister. Bayartsogt Sangajav set up "Legend
> Plus Capital Ltd" with a Swiss bank account, while he served as finance
> minister of the impoverished state from 2008 to 2012. He says it was "a
> mistake" not to declare it, and says "I probably should consider resigning
> from my position".
>
> . The president of Azerbaijan and his family. A local construction
> magnate, Hassan Gozal, controls entities set up in the names of President
> Ilham Aliyev's two daughters.
>
> . The wife of Russia's deputy prime minister. Olga Shuvalova's husband,
> businessman and politician Igor Shuvalov, has denied allegations of
> wrongdoing about her offshore interests.
>
> .A senator's husband in Canada. Lawyer Tony Merchant deposited more than
> US$800,000 into an offshore trust.
>
> He paid fees in cash and ordered written communication to be "kept to a
> minimum".
>
> . A dictator's child in the Philippines: Maria Imelda Marcos Manotoc, a
> provincial governor, is the eldest daughter of former President Ferdinand
> Marcos, notorious for corruption.
>
> . Spain's wealthiest art collector, Baroness Carmen Thyssen-Bornemisza, a
> former beauty queen and widow of a Thyssen steel billionaire, who uses
> offshore entities to buy pictures.
>
> . US: Offshore clients include Denise Rich, ex-wife of notorious oil
> trader Marc Rich, who was controversially pardoned by President Clinton on
> tax evasion charges. She put $144m into the Dry Trust, set up in the Cook
> Islands.
>
> It is estimated that more than $20tn acquired by wealthy individuals could
> lie in offshore accounts. The UK-controlled BVI has been the most
> successful among the mushrooming secrecy havens that cater for them.
>
> The Caribbean micro-state has incorporated more than a million such
> offshore entities since it began marketing itself worldwide in the 1980s.
> Owners' true identities are never revealed.
>
> Even the island's official financial regulators normally have no idea who
> is behind them.
>
> The British Foreign Office depends on the BVI's company licensing revenue
> to subsidise this residual outpost of empire, while lawyers and accountants
> in the City of London benefit from a lucrative trade as intermediaries.
>
> They claim the tax-free offshore companies provide legitimate privacy.
> Neil Smith, the financial secretary of the autonomous local administration
> in the BVI's capital Tortola, told the Guardian it was very inaccurate to
> claim the island "harbours the ethically challenged".
>
> He said: "Our legislation provides a more hostile environment for
> illegality than most jurisdictions".
>
> Smith added that in "rare instances .where the BVI was implicated in
> illegal activity by association or otherwise, we responded swiftly and
> decisively".
>
> The Guardian and ICIJ's Offshore Secrets series last year exposed how UK
> property empires have been built up by, among others, Russian oligarchs,
> fraudsters and tax avoiders, using BVI companies behind a screen of sham
> directors.
>
> Such so-called "nominees", Britons giving far-flung addresses on Nevis in
> the Caribbean, Dubai or the Seychelles, are simply renting out their names
> for the real owners to hide behind.
>
> The whistleblowing group WikiLeaks caused a storm of controversy in 2010
> when it was able to download almost two gigabytes of leaked US military and
> diplomatic files.
>
> The new BVI data, by contrast, contains more than 200 gigabytes, covering
> more than a decade of financial information about the global transactions
> of BVI private incorporation agencies. It also includes data on their
> offshoots in Singapore, Hong Kong and the Cook Islands in the Pacific.
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