Jersey caught up in international "Panama Papers" offshore scandal

Monday 04 April 2016

A global law and trust company with offices in Jersey is at the centre of what is being described as the “the biggest leak in history” after 11.5 million documents about account holders and client files were published.

The leak of files from Mossack Fonseca is being featured heavily across the world’s media, and coverage is likely to continue for weeks – the first set of revelations featured a $2 billion offshore trail leading to Russian President Vladimir Putin.

Jersey does not seem to be centrally involved in the story yet, but the Guardian has reported that there is more to come on 12 national leaders among 143 politicians who have been using offshore accounts, with files dating back 40 years.

Jersey does not feature in the "Top ten most popular tax havens in the Panama Papers" or the "Countries with the most active intermediaries", according to analysis of the data by the International Consortium of Investigative Journalists.

But the Island does feature in the list of the top ten banks requesting offshore companies for clients - Credit Suisse Channel Islands Limited (918 companies registered with Mossack Fonseca) and Coutts and Co Trustees (Jersey) Limited (487 companies registered) are third and seventh in the list respectively. Rothschild Trust Guernsey Limited (378 companies registered) is in the tenth spot.

Icelandic Prime Minister Sigmundur Gunnlaughsson and senior members of the Chinese politburo have been named in the files, along with 23 individuals who have had sanctions imposed on them for their links to the ruling regimes in North Korea, Zimbabwe and Syria.

Mossack Fonseca is a Panamanian firm with offices in Switzerland, Cyprus and the British Virgin Islands – as well as the fourth floor of Osprey House in Old Street, across the road from the States building at Cyril Le Marquand House.

The story is likely to increase pressure on UK Prime Minister David Cameron to act on British offshore financial service centres – including Jersey, Guernsey and the Isle of Man – in the build-up to an international anti-corruption conference in London next month.

Mr Cameron announced last year that a public register of beneficial ownership – essentially a public record of who really owns what – would be introduced by June. At the moment, Jersey has a register of beneficial ownership that it shares with law enforcement and tax authorities from around the world, but like other offshore centres, the Island has refused to make the register public.

Note: Black Horse, part of Lloyds Banking Group, have asked us to make clear that although they occupy part of the same building in Old Street, they are not associated with Mossack Fonseca.