MONTEREY PARK, Calif., April 5, 2016 /PRNewswire/ -- The release of the so-called "Panama Papers" allegedly connected to the Mossack Fonseca law firm may reflect the extensive use of Panama and offshore Caribbean corporations to avoid potential tax liability and the laundering of funds. Already this has caused the resignation of one world leader.
According to Henry Kupperman who instructs law firms and financial institutions on anti-money laundering and the detection of other financial crimes, "the disclosure of these files may in fact reveal how politicians and wealthy individuals use offshore corporations to hide their wealth and to acquire real estate and other assets throughout the world, including in the United States. American financial institutions and businesses need to use caution in dealing with offshore companies."
"Most importantly, they need to know who is behind the offshore entity and where the money is coming from." But, Kupperman notes, caution needs to be exercised with some American entities as well. "Delaware and Nevada Limited Liability Corporations have been used as shell companies for money laundering activities and can be just as effective as offshore companies. Unfortunately, many times, these types of LLCs are viewed as more reliable because they are incorporated in the U.S. However, the same level of scrutiny must be applied to such entities."
Mr. Kupperman, is a former litigator and now General Counsel of Applied Facts, a leading international investigations firm that specializing in money laundering and Bank Secrecy Act investigations. Previously, he served on occasion as Special Outside Counsel to the California Superintendent of Banks.
Mr. Kupperman can be reached at Applied Facts, located at 901 Corporate Center Drive, Monterey Park, CA 91754, Tel. No. (213) 892-8700.
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SOURCE Applied Facts