By now you will no doubt have heard about the Panama Papers, and whilst everyone at work is chatting away you’re left scratching your head and hoping no one asks for your opinion.

Fear not, just get to grips with the basics and I’m sure you will more than hold your own during that lunch time chat.

The first thing to know is that the files come from a Panamanian law firm called Mossack Fonseca, and they show that clients of the company were able to launder money and dodge taxes through some underhanded moving of money.

Next we’ll deal with who has been caught with their pants down courtesy of the BBC:

There are links to 12 current or former heads of state in the data, including dictators accused of looting their own countries.

More than 60 relatives and associates of heads of state and other politicians are also implicated.

The files also reveal a suspected billion-dollar money laundering ring involving close associates of Russia‘s President, Vladimir Putin.

Also mentioned are the brother-in-law of China‘s President Xi Jinping; Ukraine President Petro Poroshenko; Argentina President Mauricio Macri; the late father of UK Prime Minister David Cameron and three of the four children of Pakistan‘s Prime Minister Nawaz Sharif.

The documents show that Iceland‘s Prime Minister, Sigmundur Gunnlaugsson, had an undeclared interest linked to his wife’s wealth. He is now facing calls for his resignation.

Oh and FIFA too of course, because wherever there’s corruption to be had you’ll find their greedy little fingers digging deep.

Next let’s look at why Panama was the ideal location (clue: it’s a tax haven) and how the files were leaked:

…most of what has been going on is about hiding the true owners of money, the origin of the money and avoiding paying tax on the money…

Some of the main allegations centre on the creation of shell companies, that have the outward appearance of being legitimate businesses, but are just empty shells. They do nothing but manage money, while hiding who owns it…

The 11.5m documents were obtained by the German newspaper Sueddeutsche Zeitung and shared with the International Consortium of Investigative Journalists (ICIJ)…

It is the biggest leak in history, dwarfing the size of those released by the Wikileaks organisation. In all, the details of 214,000 entities, including companies, trusts and foundations, were leaked.

Still with us? Good on you, that’s pretty much the basics done. No need to eat your lunch in private now, just give this a reread and you’re good to go.

[source:bbc]

[imagesources:wired&vox]