Of course it is not just the USA but South Dakota being used as tax haven as well as a possible money laundering centre is interesting.
Edward Snowden has paid tribute to whoever leaked the Pandora papers and commented, “Hats off to the source”.
The British look embarrassed by this with their PM possibly being compelled to hand back personal financial donations and the Conservatives insisting that all donations to the Party are vetted [flying pigs seen in herds across London] while of course the Windsors appear to have been involved and, unsurprisingly, Tony Blair is mentioned. Some years ago London was recognised as the money laundering capital of the world, I wonder if it has lost its title, or whether it still retains it.
The Czech prime minister, is accused of using a convoluted offshore structure to purchase a mansion in the South France, he denies it of course, and has alleged that this is a a deliberate attempt to damage his chances in the general election due later this week.
You do wonder how some of these individuals look themselves in the mirror each morning.
Edward Snowden has paid tribute to whoever leaked the Pandora papers and commented, “Hats off to the source”.
The British look embarrassed by this with their PM possibly being compelled to hand back personal financial donations and the Conservatives insisting that all donations to the Party are vetted [flying pigs seen in herds across London] while of course the Windsors appear to have been involved and, unsurprisingly, Tony Blair is mentioned. Some years ago London was recognised as the money laundering capital of the world, I wonder if it has lost its title, or whether it still retains it.
The Czech prime minister, is accused of using a convoluted offshore structure to purchase a mansion in the South France, he denies it of course, and has alleged that this is a a deliberate attempt to damage his chances in the general election due later this week.
You do wonder how some of these individuals look themselves in the mirror each morning.
https://www.theguardian.com/news/202...67bn-tax-haven
South Dakota is sheltering billions of dollars in wealth, some linked to individuals and companiesaccused of financial crimes or serious wrongdoing, according to documents in the Pandora papers.
The files suggest the US midwestern state now rivals Switzerland, Panama, the Cayman Islands and other famous tax havens as a premier venue for the international rich seeking to protect their assets from local taxes or the authorities.
Wealthy foreign individuals and their families are moving millions of dollars to South Dakota trust funds, which enjoy some of the world’s most powerful legal protections from taxes, creditors and prying eyes.
The US has previously faced international criticism over the ease with which shell companies – which can be used to perpetrate tax fraud and financial crimes – can be incorporated in the state of Delaware.[...]
The disclosures will be a major embarrassment for the US president, Joe Biden, who upon entering office pledged to “lead efforts internationally to bring transparency to the global financial system”.
The papers were leaked to the ICIJ, a US-based journalism nonprofit, which shared access to them with the Guardian, the BBC, the Washington Post and other media partners around the world.
According to a 2020 state report, South Dakota’s burgeoning trust industry holds an estimated $367bn (£273bn) in assets, a sum approaching the annual economic output of the Republic of Ireland – up from $75.5bn in 2011. The phenomenal growth has been supercharged by the state’s aggressive drive to attract money by shielding trust owners’ assets from foreign governments, taxes and even former spouses.
South Dakota’s moves have inspired other states to “liberalise” their trust regulations, a phenomenon that helped the US overtake Switzerland in the Tax Justice Network’s 2020 global ranking of countries most complicit in helping individuals hide their finances from the rule of law.
More than 200 US trusts appear in the Pandora papers data, sheltering at least $1bn. While South Dakota emerges from the leak as the most popular location, with 81 trusts, Florida, Delaware, Texas and Nevada account for dozens more.
mong those for whom South Dakotan trust firms have acted are a Colombian textile magnate who was previously fined $20m by US authorities investigating a major money-laundering network.
José Douer-Ambar set up a South Dakota trust in 2013, according to the files. However, less than a decade earlier in 2004, US, UK and Canadian authorities had announced the dismantling of a massive Colombian money-laundering ring in which Douer had been partly implicated.
The Colombian Black Market Peso Exchange (BMPE) laundered millions of dollars accrued by narcotics traffickers. US authorities alleged that Douer had repeatedly purchased millions of dollars in the BMPE system over a period of years. Douer, who died last year, agreed to forfeit $20m in connection with a deferred prosecution agreement and the settlement of a civil asset forfeiture action.
Prior to establishing the new trust, Douer’s trust provider made inquiries about his history. Douer’s representative described his involvement in the BMPE scheme as an “unfortunate experience” in a reply to the offshore provider.
“The case arose from a transfer of US$190,000.00 to a bank in the UK using a broker who had been highly recommended to Mr Douer as an honest person by other wealthy Colombians,” the representative said. “Unknown to Mr Douer the broker was unlicensed and had also received US dollars from persons involved in narcotraficking and that led to Mr Douer’s problems.”
That explanation appears to have been sufficient for the provider. Although the total sum sheltered in the trust is unclear, email correspondence suggests a previous entity linked to Douer contained as much as $100m. [...]
Chuck Collins, the author of The Wealth Hoarders: How Billionaires Pay Millions to Hide Trillions and the director of the programme on inequality at the Institute for Policy Studies, said the situation with regard to South Dakota was “an embarrassment” for the US.
“We are the weak link. And South Dakota is in a race to the bottom to be the weakest link on trusts,” said Collins. “We have seen the hidden wealth apparatus but it is always considered offshore. The more we understand that it’s onshore, the US is a weak link and we are now the magnet for kleptocratic capital the better for national understanding and the greater the potential for national legislation.”
South Dakota is sheltering billions of dollars in wealth, some linked to individuals and companiesaccused of financial crimes or serious wrongdoing, according to documents in the Pandora papers.
The files suggest the US midwestern state now rivals Switzerland, Panama, the Cayman Islands and other famous tax havens as a premier venue for the international rich seeking to protect their assets from local taxes or the authorities.
Wealthy foreign individuals and their families are moving millions of dollars to South Dakota trust funds, which enjoy some of the world’s most powerful legal protections from taxes, creditors and prying eyes.
The US has previously faced international criticism over the ease with which shell companies – which can be used to perpetrate tax fraud and financial crimes – can be incorporated in the state of Delaware.[...]
The disclosures will be a major embarrassment for the US president, Joe Biden, who upon entering office pledged to “lead efforts internationally to bring transparency to the global financial system”.
The papers were leaked to the ICIJ, a US-based journalism nonprofit, which shared access to them with the Guardian, the BBC, the Washington Post and other media partners around the world.
According to a 2020 state report, South Dakota’s burgeoning trust industry holds an estimated $367bn (£273bn) in assets, a sum approaching the annual economic output of the Republic of Ireland – up from $75.5bn in 2011. The phenomenal growth has been supercharged by the state’s aggressive drive to attract money by shielding trust owners’ assets from foreign governments, taxes and even former spouses.
South Dakota’s moves have inspired other states to “liberalise” their trust regulations, a phenomenon that helped the US overtake Switzerland in the Tax Justice Network’s 2020 global ranking of countries most complicit in helping individuals hide their finances from the rule of law.
More than 200 US trusts appear in the Pandora papers data, sheltering at least $1bn. While South Dakota emerges from the leak as the most popular location, with 81 trusts, Florida, Delaware, Texas and Nevada account for dozens more.
mong those for whom South Dakotan trust firms have acted are a Colombian textile magnate who was previously fined $20m by US authorities investigating a major money-laundering network.
José Douer-Ambar set up a South Dakota trust in 2013, according to the files. However, less than a decade earlier in 2004, US, UK and Canadian authorities had announced the dismantling of a massive Colombian money-laundering ring in which Douer had been partly implicated.
The Colombian Black Market Peso Exchange (BMPE) laundered millions of dollars accrued by narcotics traffickers. US authorities alleged that Douer had repeatedly purchased millions of dollars in the BMPE system over a period of years. Douer, who died last year, agreed to forfeit $20m in connection with a deferred prosecution agreement and the settlement of a civil asset forfeiture action.
Prior to establishing the new trust, Douer’s trust provider made inquiries about his history. Douer’s representative described his involvement in the BMPE scheme as an “unfortunate experience” in a reply to the offshore provider.
“The case arose from a transfer of US$190,000.00 to a bank in the UK using a broker who had been highly recommended to Mr Douer as an honest person by other wealthy Colombians,” the representative said. “Unknown to Mr Douer the broker was unlicensed and had also received US dollars from persons involved in narcotraficking and that led to Mr Douer’s problems.”
That explanation appears to have been sufficient for the provider. Although the total sum sheltered in the trust is unclear, email correspondence suggests a previous entity linked to Douer contained as much as $100m. [...]
Chuck Collins, the author of The Wealth Hoarders: How Billionaires Pay Millions to Hide Trillions and the director of the programme on inequality at the Institute for Policy Studies, said the situation with regard to South Dakota was “an embarrassment” for the US.
“We are the weak link. And South Dakota is in a race to the bottom to be the weakest link on trusts,” said Collins. “We have seen the hidden wealth apparatus but it is always considered offshore. The more we understand that it’s onshore, the US is a weak link and we are now the magnet for kleptocratic capital the better for national understanding and the greater the potential for national legislation.”
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