The Panama Papers leak has provided open government advocates with hope that ways will be found to shine everlasting light on suspect financial dealings. Not only are off shore tax havens providing cover for criminal transactions, but financial companies are equally guilty. In addition, the United States government provides legal cover for shadow dealings: “In every state in the United States, one can incorporate a legal entity without having to disclose who controls the entity or derives economic benefits from it. In fact, so synonymous is Delaware with anonymous companies and ghost corporations that it was named in Transparency International’s Unmask the Corrupt campaign (Unmaskthecorrupt.org) as one of the most symbolic cases of corruption,” writes Transparency International, in a April 4, 2016, press release.
With the Panama Papers revealing the depths of official corruption, the U.S. Congress is positioned to help the cause of justice and transparency by passing a bill in the pipeline requiring states to post the identities of the true owners and controllers of shell companies. It is particularly easy to incorporate a shell company in Delaware, Wyoming and Nevada. (The Hill, April 4, 2016, by Naomi Jagoda)
Panamanian President Juan Carlos Varela pledged to reform financial transactions in his country after the release of the Panama Papers showing a Panama-based law firm helped clients evade taxes. Varela is establishing a commission to look into measures need to bolster transparency and will work with international investigators. (USA TODAY, April 7, 2016, by Kim Hjelmgaard)