Release of offshore records draws worldwide response

From ICIJ …

By Kimberley Porteous, Michael Hudson and Sasha Chavkin

February 20, 2014, 11:15 am

ICIJ’s “Offshore Leaks” probe has ignited reactions around the globe – sparking official investigations, sweeping policy changes and high-profile resignations.

Since the series of stories – based on a leak of 2.5 million secret offshore records – began rolling out in April 2013, responses have come rapidly, from India, Mongolia, France and dozens of other nations. The European Union’s top tax official has called Offshore Leaks “the most significant trigger” behind Europe’s newfound resolve to crack down on offshore hideaways and global tax dodging.

“We’re in a completely different context today” because of the Offshore Leaks revelations, Belgium’s secretary of state said. “It’s a new world.”

The European Parliament. Photo: Shutterstock Among the latest impacts and responses:

• The European Parliament voted today to create public registries in EU member countries listing the real, flesh-and-blood owners of companies and trusts. The measure will crack down on individuals and companies that hide assets in secretive offshore entities, which have often been linked to tax evasion, money laundering and corruption. The use of offshore havens by prominent European politicians and business leaders was revealed last year by ICIJ’s Offshore Leaks investigation. “Crucial facilitators of illicit money flows are secretive corporate structures operating in and through secrecy jurisdiction, often also referred to as tax havens,” state the proposed new rules.The measure would amend the EU’s current anti-money laundering rules, and was approved today by two key parliamentary committees, the committees on Economic and Monetary Affairs and Civil Liberties, Justice and Home Affairs. The changes will be voted on by the full European Parliament in March. If the rules are approved – the committee vote was 45 to 1 in their favor – it will then fall to European member states to implement them. So far, only the UK has formally pledged to create a public ownership registry of companies.

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