[The Nation] A just-released "Panama Papers on steroids" show how the US has become a major tax haven and destination for illicit wealth.
The Pandora Papers, a massive leak of secret data about the illicit financial activities of the super-wealthy, will be supplying revelations for weeks and probably months to come.
The Pandora Papers undertaking involved 600 journalists from 117 countries and was coordinated by the International Consortium of Investigative Journalists (ICIJ) in what they describe as the "largest-ever journalistic collaborative." (You can follow rolling releases at The Washington Post, the US partner in the collaboration, and The Guardian, the UK partner.)
Five and a half years ago, the ICIJ released the Panama Papers, which focused on a leak from a single Panamanian law firm, Mossack Fonseca. According to Gerald Ryle, director of the ICIJ, the Pandora Papers are "the Panama Papers on steroids."
The Pandora leaks come from confidential records at 14 different offshore wealth service firms in Switzerland, Singapore, Cyprus, Samoa, Vietnam, and Hong Kong, as well as wealth managers in well-known tax havens such as Belize, Seychelles, The Bahamas, and the British Virgin Islands. These firms help wealthy individuals and corporations to form trusts and foundations, incorporate companies, and establish other entities in low- or no-tax jurisdictions.
The Pandora team analyzed almost 12 million files from these firms, including leaked e-mails, memos, tax declarations, bank statements, passport scans, diagrams of corporate structures, secret spreadsheets, and clandestine real estate contracts. Some reveal the real owners of opaque shell companies for the first time.
In the coming weeks, we will learn more about the 130 global billionaires with ownership entities in secrecy jurisdictions (100 with total assets worth more than $600 billion in 2021). US citizens are so far underrepresented in these leaks, largely because of where the wealth service providers were located. No US wealth-advisory firms were part of the leaks. Nonetheless, more than 700 companies revealed in the Pandora Papers have ties to real human owners in the US.
The big news for rest of the world is how the United States has become a major tax haven and global destination for illicit wealth. Earlier leaks, such as the Panama and Paradise papers, reinforced the misperception that most of these financial shell games take place "offshore," in secrecy jurisdictions and tax havens in small countries with weak banking laws. 
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