The Panama Papers and Their Connections to Crime, Corruption, and Terrorism

Dozens of companies, individuals, and celebrities have been listed by the leaked Panama Papers over the weekend. Some of the activities of these groups, businesses, and individuals whose activities range from terrorism financing, arms dealing, and supporting dictatorships.

The information that was contained in the Panama Papers had actually been leaked one year earlier and was under observation by the International Consortium of Investigative Journalists (ICIJ).

The Panama Papers which were leaked Sunday April 3, 2016, unveiled 11 million documents detailing how law firm Mossack Fonseca,which specializes in creating off shore entities, had been a major money launderer.  The firm which has been around for 40 years always claimed it abided by the rules and did nothing unethical.

According to a U.S. Treasury official, Panama has always had a problematic reputation as a permissible environment for money laundering and other financial crimes. Panama was also under the rule of dictator Manuel Noriega from 1983-1989 whose administration was accused of massive corruption and human rights violations.

Records indicated that Mossack Fonseca for years had made money by creating off shore companies that appealed to terrorist financiers and war criminals from the Middle East, drug cartel leaders from Mexico, Guatemala, and Eastern Europe; nuclear proliferation from Iran and North Korea; and arms dealers from South Africa.

It was reported that Bashar al-Asaad’s cousin Rami Mahklouf, who ran Drex Technologies along with six other oil producing companies in Syria. He was sanctioned by the US in 2008 for attempting to manipulate a judicial system and intelligence service into intimidating his business rivals. Rami was valued at $5 billion and supposedly controlled 60% of Syria’s wealth through gas and oil, construction, telecommunication, retail, and construction companies he owned.  He is believed to be financing the pro-government forces during Syria’s civil war.  Mossack Fonseca stopped doing business him when his reputation for bribery and political connections to al-Assad, along with his cigarette smuggling operations brought too much negative attention.

The US Office of Foreign Assets Control (OFAC) has also indicated that Iranian financiers of Lebanese terror group Hezbollah were using Mossack Fonseca to transfer money. The Panama Papers also listed Cuba as being an accomplice to Hezbollah by producing fake Venezuelan passports to the terror group.

London bank HSBC was also listed and has a history of ties to Mexican drug cartels and facilitating support for terrorism and rogue states. Also listed in the papers was Swiss financial firm Credit Sussie, has been repeatedly accused of involved in funding Hezbollah.

North Korean financial company DCB was listed in the Panama Papers as being a major financier of North Korea’s nuclear program. The company was placed on the US blacklist in 2013 for alleged questionable activities dating back to 2006.  In addition, British banker Nigel Cowie set up a front company to help fund North Korea’s nuclear program and sell arms.

John Bradenkamp, a Zimbabwe businessman, was listed as being a major arms dealer to the militia groups in the Democratic Republic of Congo. The weapons Bradenkamp sold have been rumored to have been used for the second Congo War. Bradenkamp had very close relations with Zimbabwe dictator Robert Mugabe, accused of being a serial violator of human rights.

Political officials were also identified in the Panama Papers including leaders from  China and Russia. It has also unveiled a number of allies to the US including England and the resignation of the prime minister of Ice Land that were linked to the Panama law firm.

The Panama Papers confirmed rumors and speculation about certain people and companies, but may have also exposed the magnitude of political corruption throughout the world.