Paradise Papers put pressure on local regulators

Author: John Crabb | Published: 15 Nov 2017

The latest in a string of recent data breaches has revealed that local regulators and systems in offshore hubs are failing to prevent corruption and money laundering activity, according to market participant. It has also exposed the growing divergence between public perception and the rule of law when it comes to legal tax avoidance.  

The Paradise Papers, the recent theft of 13.4 million files from law firm Appleby and its fiduciary business Estera, exposed a network of companies and individuals, including politicians, the British monarchy and Facebook that have been involved in the avoidance of tax in 19 so-called tax havens across the world.

While moving money offshore is legal in practice, the breach has reopened discussions, propelled by the Panama Papers leak in 2016, that suggest the global financial system is not functioning correctly, and that complex cross-border tax corporate structures are being taken advantage of to...