may have laundered as much as €100 million a year: CBS News, “Banking: A Crack in the Swiss Vault.”
one of the Central African Republic’s accounts: U.S. Senate Permanent Subcommittee on Investigations, “Money Laundering and Foreign Corruption: Enforcement and Effectiveness of the Patriot Act,” 108th Cong., 2nd Sess., July 15, 2004, p. 56.
the family of the president of Gabon: Majority and Minority Staff of the U.S. Senate Permanent Subcommittee on Investigations, “Keeping Foreign Corruption Out of the United States: Four Case Histories,” February 4, 2010, p. 106.
HSBC’s head of compliance publicly tendered his resignation: Jamie Grierson and Graeme Evans, “HSBC Boss David Bagley Resigns During US Senate Meeting After Money Laundering Revelations,” Independent, July 17, 2012, http://www.independent.co.uk/news/business/news/hsbc-boss-david-bagley-resigns-during-us-senate-meeting-after-money-laundering-revelations-7953320.html.
allegations that HSBC laundered as much as 60 to 70 percent of the illicit money in Mexico: Majority and Minority Staff of the U.S. Senate Permanent Subcommittee on Investigations, “U.S. Vulnerabilities to Money Laundering, Drugs, and Terrorist Financing: HSBC Case History,” July 17, 2012, p. 69.
An estimated 15 percent of the Cayman Islands accounts: Ibid., p. 283.
generating annual revenue of $26 million for HSBC: Ibid., p. 260.
sentenced to ten years in prison for tax fraud a few years earlier: “Miami Beach Hotel Developers Convicted of Tax Fraud,” Southern District of Florida, U.S. Attorney, October 7, 2010, https://www.justice.gov/archive/usao/fls/PressReleases/2010/101007-01.html.
had as many as 895 companies with Mossfon: Marco Chown Oved and Robert Cribb, “Signatures for Sale,” Toronto Star, January 26, 2017, http://projects.thestar.com/panama-papers/canada-signatures-for-sale/.
they owned a $1.2 million helicopter: Ashlea Ebeling, “Flatotel Father Son Team Get 10 Years for Tax Fraud,” Forbes, February 4, 2011, https://www.forbes.com/sites/ashleaebeling/2011/02/04/flatotel-father-son-team-get-10-years-for-tax-fraud/#3cb02f63207c.
The Cohens were accused of opening bank accounts: “U.S. Vulnerabilities to Money Laundering, Drugs, and Terrorist Financing,” p. 260.
froze the assets of Syrian businessman Rami Makhlouf: U.S. Department of the Treasury, “Rami Makhluf Designated for Benefiting from Syrian Corruption,” February 21, 2008, https://www.treasury.gov/press-center/press-releases/Pages/hp834.aspx.
head of Syria’s feared civilian intelligence agency, the Mukhabarat: Ian Black, “Six Syrians Who Helped Bashar al-Assad Keep Iron Grip After Father’s Death,” Guardian, April 28, 2011, https://www.theguardian.com/world/2011/apr/28/syria-bashar-assad-regime-members.
the European Union sanctioned Rami and Hafez Makhlouf: European Union, “Council Implementing Decision 2013/185/CFSP of 22 April 2013 implementing Council Decision 2012/739/CFSP Concerning Restrictive Measures Against Syria,” http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32013D0185.
“We have lost HSBC Geneva”: Quoted in an email from Sandra de Cornejo to Ramón Fonseca et al., February 17, 2011.
In a six a.m. raid in Geneva: Fabiano Citroni, “Condamné pour blanchiment: ‘Je me sens comme un paria,’” Tribune de Genève, June 11, 2013, http://www.tdg.ch/geneve/actu-genevoise/condamne-blanchiment-paria/story/19850613.
HSBC paid a record $1.9 billion in fines: Jill Treanor and Dominic Rushe, “HSBC Pays Record $1.9bn Fine to Settle US Money-Laundering Accusations,” Guardian, December 11, 2012. https://www.theguardian.com/business/2012/dec/11/hsbc-bank-us-money-laundering.
“I don’t think HSBC was an anomaly”: Author interview with Laura Stuber, Washington, DC, October 2016.
11: JOURNALISTIC FIREPOWER
His great-grandfather had been a prominent newspaper editor: Caelainn Barr, “Irish-Born Journalist Heads Up ICIJ Investigation into Offshore Account Holders,” Irish Times, April 6, 2013, http://www.irishtimes.com/news/irish-born-journalist-heads-up-icij-investigation-into-offshore-account-holders-1.1350791.
Journalism was about all he was qualified to do: Author interview with Gerard Ryle, July 2016.
In reality, it was a multimillion-dollar hoax: Gerard Ryle, “Rise of a Man with a Magic Mystery Pill,” Sydney Morning Herald, January 8, 2007, http://www.smh.com.au/news/national/rise-of-a-man-with-a-magic-mystery-pill/2007/01/07/1168104867997.html?page=fullpage#contentSwap21.
The center put it on its mousepads: William E. Buzenberg, “Anatomy of a Global Investigation: Collaborative, Data-Driven, Without Borders,” Harvard Kennedy School, Shorenstein Center on Media, Politics, and Public Policy, July 2015, https://shorensteincenter.org/wp-content/uploads/2015/07/Anatomy-of-a-Global-Investigation-William-Buzenberg.pdf.
Lewis envisioned a network: “About ICIJ,” International Consortium of Investigative Journalists, https://web.archive.org/web/19981201051259/http://icij.org:80/about/.
an American nonprofit whose initials sound like a U.S. intelligence agency: Author interview with Charles Lewis, July 2017.
“There was this thing in the air”: Author interview with David Leigh, May 2017.
how Big Tobacco circumvented health laws and laundered money: “Big Tobacco Smuggling,” International Consortium of Investigative Journalists, 2000–2001, https://www.icij.org/node/460/uk-considering-formal-investigation-cigarette-%20smuggling.
The initial story, published in January 2000: Duncan Campbell, “Big Tobacco Smuggling,” Duncan Campbell.org, 2000–2001, http://www.duncancampbell.org/content/big-tobacco-smuggling.
The center was slow to adapt to the digital age: Mariah Blake, “Something Fishy?,” Columbia Journalism Review, July–August 2012, http://archives.cjr.org/feature/something_fishy.php.
CPI’s head Bill Buzenberg and the center’s board: Ibid.
Global Investigative Journalism Conference: Speakers, Global Investigative Journalism Conference, October 11, 2011, https://web.archive.org/web/20111026070651/http://gijc2011.org:80/?page_id=19.
Australia’s Paul Hogan, of Crocodile Dundee fame: Marina Walker Guevara, Nicky Hager, Mar Cabra, Gerard Ryle, and Emily Menkes, “Who Uses the Offshore World,” International Consortium of Investigative Journalists, April 16, 2013, https://www.icij.org/offshore/who-uses-offshore-world.
indicted Rich for tax evasion and racketeering: Eric N. Berg, “Marc Rich Indicted in Vast Tax Evasion Case,” New York Times, September 20, 1983, http://www.nytimes.com/1983/09/20/business/marc-rich-indicted-in-vast-tax-evasion-case.html.
Tony Merchant, Canada’s “class action king”: Frédéric Zalac, Alex Shprintsen, Zach Dubinsky, and Harvey Cashore, “Canadian Senator’s Husband Shifted Money into Offshore Tax Havens,” International Consortium of Investigative Journalists, April 3, 2013, https://www.icij.org/offshore/canadian-senators-husband-shifted-money-offshore-tax-havens.
He decided to contrast the findings with Putin’s repeated calls: Roman Shleynov, “Elites Undermine Putin Rail Against Tax Havens,” International Consortium of Investigative Journalists, April 4, 2013, https://www.icij.org/offshore/elites-undermine-putin-rail-against-tax-havens.
Commonwealth appeared not to have known about the activities: Michael Hudson, Stefan Candea, and Marina Walker Guevara, “Caribbean Go-Between Provided Shelter for Far-Away Frauds, Documents Show,” International Consortium of Investigative Journalists, April 4, 2013, https://www.icij.org/offshore/caribbean-go-between-provided-shelter-far-away-frauds-documents-show.
looked like a schooner’s rigging: Bastian Obermayer, Frederik Obermaier, and Titus Plattner, “After Multi-Million Inheritance, Playboy Sachs Goes Offshore,” International Consortium of Investigative Journalists, April 5, 2013, https://www.icij.org/offshore/after-multi-million-inheritance-playboy-sachs-goes-offshore.
“The Guardian says, ‘Shit tastes great’”: Author interview with Mar Cabra, June 2016.
She was hooked, rejecting a promotion: Author interview with Giannina Segnini, June 2016.
Hudson was about to be laid off: Author intervie
w with Michael Hudson, June 2016.
“None of this reflects our trust in your work”: Michael Hudson, “Offshore Project: Writing Guidelines.”
The website received more than six hundred thousand page views: Email to author from Hamish Boland-Rudder, July 28, 2017.
The Washington Post chose to publish its big story: Scott Higham, Michael Hudson, and Marina Walker Guevara, “Piercing the Secrecy of Offshore Tax Havens,” Washington Post, April 6, 2013, https://www.washingtonpost.com/investigations/piercing-the-secrecy-of-offshore-tax-havens/2013/04/06/1551806c-7d50-11e2-a044-676856536b40_story_3.html.
Bill Buzenberg remembers three beefy IRS agents: Email to author from Bill Buzenberg, July 2017.
A month later the IRS put out a face-saving press release: “IRS, Australia and United Kingdom Engaged in Cooperative Effort to Combat Offshore Tax Evasion,” Internal Revenue Service, May 9, 2013, https://www.irs.gov/uac/newsroom/irs-australia-and-united-kingdom-engaged-in-cooperative-effort-to-combat-offshore-tax-evasion.
12: PROFITABLE PRINCELINGS
offshore clients with addresses in Hong Kong and mainland China: Marina Walker Guevara, Gerard Ryle, Alexa Olesen, Mar Cabra, Michael Hudson, and Christoph Giesen, “Leaked Records Reveal Offshore Holdings of China’s Elite,” International Consortium of Investigative Journalists, January 21, 2014, https://www.icij.org/offshore/leaked-records-reveal-offshore-holdings-chinas-elite.
an exponentially larger amount of foreign direct investment: “China Foreign Direct Investment,” Trading Economics, http://www.tradingeconomics.com/china/foreign-direct-investment.
the hidden wealth of the families of China’s top leaders: David Barboza, “Billions in Hidden Riches for Family of Chinese Leader,” New York Times, October 25, 2012, http://www.nytimes.com/2012/10/26/business/global/family-of-wen-jiabao-holds-a-hidden-fortune-in-china.html.
quickly banned access to the two news organizations: Keith Bradsher, “China Blocks Web Access to Times After Article,” New York Times, October 25, 2012, http://www.nytimes.com/2012/10/26/world/asia/china-blocks-web-access-to-new-york-times.html.
They also opted not to renew a visa: “Visa Issue in China Forces Out Times Reporter,” New York Times, December 31, 2012, http://www.nytimes.com/2013/01/01/world/asia/times-reporter-in-china-is-forced-to-leave-over-visa-issue.html.
Chan was one of the original foreign journalists at the Harvard meeting: https://www.icij.org/journalists/ying-chan.
One of its reporters, Luo Changping: “Luo Changping: Journalist—China (Integrity Award),” Transparency International, November 8, 2013, https://www.transparency.org/getinvolved/awardwinner/luo_changping; and Chris Buckley, “After a Journalist’s Prodding, China Investigates a Top Official,” New York Times, May 12, 2013, http://www.nytimes.com/2013/05/13/world/asia/china-eyes-liu-tienan-an-official-challenged-by-a-journalist.html?_r=0.
two most popular jurisdictions for Hong Kong’s elite: Author interview with Jürgen Mossack, January 2017.
“To lower the political risks”: “Gong Enguang: Corporate Overseas Investment Is Mainly Concerned About Legal Risks,” Sina Finance, April 26, 2015, http://finance.sina.com.cn/hy/20150426/143022046771.shtml.
“Austin, be very careful”: Email from Ramsés Owens to Austin Zhang, et al., May 14, 2008.
offered a similar service to Marianna Olszewski: Eric Lipton and Julie Creswell, “Panama Papers Show How Rich United States Clients Hid Millions Abroad,” New York Times, June 5, 2016, https://www.nytimes.com/2016/06/06/us/panama-papers.html.
Portcullis TrustNet: Walker Guevara et al., “Leaked Records Reveal Offshore Holdings of China’s Elite.”
a grandfatherly reformer concerned with the well-being of the poor: “Who’s Who in China Leaks,” International Consortium of Investigative Journalists, January 22, 2014, https://www.icij.org/blog/2014/01/whos-who-china-leaks.
Deng Jiagui, a successful developer: “Excellence Effort Property Development Limited,” International Consortium of Investigative Journalists, https://offshoreleaks.icij.org/nodes/158037.
The other half was owned by a pair of real estate tycoons: “Excellence Group Wins Two Shenzhen Qianhai Plots for $2 Billion,” Bloomberg, July 27, 2013, https://www.bloomberg.com/news/articles/2013-07-27/excellence-group-wins-two-shenzhen-qianhai-plots-for-2-billion.
A senior engineer: China Power International Development Limited, “Resignation of Chairman and Non-Executive Director and Appointment of Chairman,” January 2, 2008, http://www.irasia.com/listco/hk/chinapower/announcement/a22350-ehkse(e).pdf.
Her interests have also strayed into other lucrative activities: Malcolm Moore and Raf Sanchez, “Daughter of ‘Butcher of Tiananmen Square’ Brokered Secret Deal for Insurance Giant,” Telegraph, October 10, 2013, http://www.telegraph.co.uk/news/worldnews/asia/china/10370547/Daughter-of-Butcher-of-Tiananmen-Square-brokered-secret-deal-for-insurance-giant.html.
She was a director of two TrustNet companies: https://offshoreleaks.icij.org/nodes/52627.
her HSBC Swiss bank account held almost $2.5 million: Sneha Shankar, “Li Xaolin, Former Chinese Premier Li Peng’s Daughter, Hid Over $2M in HSBC Swiss Account,” International Business Times, February 10, 2015, http://www.ibtimes.com/li-xiaolin-former-chinese-premier-li-pengs-daughter-hid-over-2m-hsbc-swiss-account-1811000.
none was more notorious than Bo Xilai: “Burst Balloons,” Economist, August 4, 2012, http://www.economist.com/node/21559933; and Jamil Anderlini, “Bo Xilai: Power, Death and Politics,” Financial Times, July 20, 2012, https://www.ft.com/content/d67b90f0-d140-11e1-8957-00144feabdc0.
As mayor of Dalian in the 1990s: “China: A Princeling Who Could Be Premier,” Bloomberg, March 15, 2004, https://www.bloomberg.com/news/articles/2004-03-14/china-a-princeling-who-could-be-premier.
“Fog City”: Pete Brook, “World’s Fastest-Growing Megalopolis Hides in Fog,” Wired, August 25, 2010, https://www.wired.com/2010/08/chongqing/.
Wang Lijun, the star of Iron-Blooded Police Spirits: Pin Ho and Wenguang Huang, A Death in the Lucky Holiday Hotel: Murder, Money, and an Epic Power Struggle in China (New York: PublicAffairs, 2013), p. 22.
They administered electric shock treatment: “Tiger Chains and Cell Bosses: Police Torture of Criminal Suspects in China,” Human Rights Watch, May 13, 2015, https://www.hrw.org/report/2015/05/13/tiger-chairs-and-cell-bosses/police-torture-criminal-suspects-china; and Tom Phillips, “Gu Kailai ‘Painted Neil Heywood as Crystal Meth–Dealing Drug King Pin,’” Telegraph, December 20, 2012, http://www.telegraph.co.uk/news/worldnews/asia/china/9758503/Gu-Kailai-painted-Neil-Heywood-as-crystal-meth-dealing-drug-king-pin.html.
“Corruption is the Party’s mortal wound”: John Garnaut, “The East Is Still Red,” Foreign Policy, August 22, 2013, http://foreignpolicy.com/2013/08/22/the-east-is-still-red/.
a fortune in kickbacks: Alexa Olesen, “Leaked Files Offer Many Clues to Offshore Dealings by Top Chinese,” International Consortium of Investigative Journalists, April 6, 2016, https://panamapapers.icij.org/20160406-china-red-nobility-offshore-dealings.html; and Jeremy Page and Noémie Bisserbe, “French Villa Linked to Fallen China Leader,” Wall Street Journal, August 6, 2013, https://www.wsj.com/articles/SB10001424127887323420604578650071253073626.
The school cost about £30,000 a year: Anderlini, “Bo Xilai: Power, Death and Politics.”
He was the director of two companies and the shareholder of another: https://offshoreleaks.icij.org/nodes/102672.
Caijing’s deputy investigative editor, Luo Changping: Zhang Hong, “Hard-Hitting Caijing Editor Luo Changping Removed from Post: Sources,” South China Morning Post, November 27, 2013, http://www.scmp.com/news/china/article/1367171/hard-hitting-caijing-editor-luo-changping-removed-post-sources.
13: FOLLOW THE LEAKS
scrambled after the release of Offshore Leaks: Kimberley Porteous, Michael Hudson, and Sasha Chavkin, “Release of Offshore Records Draws Worldwide Response,” International Consortium of Investigative Journalists, December 4, 2014, https://www.icij.org/blog/2013/04/re
lease-offshore-records-draws-worldwide-response.
“crisis of confidence”: Sasha Chavkin, “Tax Havens Face Crisis in Wake of Offshore Leaks, Report Says,” International Consortium of Investigative Journalists, November 26, 2013, https://www.icij.org/blog/2013/11/tax-havens-face-crisis-wake-offshore-leaks-report-says.
Spain’s El País printed a list of Spanish HSBC account holders: Manuel Altozano, “La primera ‘lista Falciani,’” El País, April 21, 2013, http://politica.elpais.com/politica/2013/04/21/actualidad/1366522419_772068.html.
Mar Cabra wrote a story in El Confidencial: C. Hernanz and Mar Cabra, “El rastro de españoles en la lista Falciani conecta con el ‘paraíso’ de las Islas Vírgenes Británicas,” El Confidencial, April 22, 2013, http://www.elconfidencial.com/espana/2013-04-22/el-rastro-de-espanoles-en-la-lista-falciani-conecta-con-el-paraiso-de-las-islas-virgenes-britanicas_205648/.
In 2006, Falciani was tapped: Juan Luis Sánchez, “¿Quién es Falciani? ¿Qué sabe Falciani?,” El Diario, December 18, 2012, http://www.eldiario.es/economia/falciani-HSBC-quien_0_80842176.html.
he downloaded the data for himself: Titus Plattner and Oliver Zihlmann, “La vraie histoire d’Hervé Falciani,” Le Matin Dimanche, February 15, 2015, http://enquete.lematindimanche.ch/falciani/.
he would use the money to leave his wife and autistic daughter: Ibid.
the BND had purchased a DVD for almost €5 million: “Massive Tax Evasion Scandal in Germany: The Liechtenstein Connection,” Der Spiegel, February 16, 2008, http://www.spiegel.de/international/business/massive-tax-evasion-scandal-in-germany-the-liechtenstein-connection-a-535768.html.
Panama: “Latest FATCA News from Bahamas, Cayman Islands, U.K., U.S.; Panama ‘Immobilizes’ Bearer Shares,” Gunster, August 19, 2013, https://gunster.com/alerts/latest-fatca-news-from-bahamas-cayman-islands-u-k-u-s-panama-immobilizes-bearer-shares-3/.
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