China was largest market for ‘Panama Papers’ law firm: investigation
Shell firms incorporated through Hong Kong and China offices of Mossack Fonseca account for 29 per cent of its globally active businesses, says International Consortium of Investigative Journalists, which examined 11.5 million leaked documents
Nearly a third of the business of Mossack Fonseca, the law firm at the centre of the Panama Papers scandal, came from its offices in Hong Kong and China, reports say – making the Asian giant its biggest market.
Shell companies incorporated through the Hong Kong and China offices of the Panamanian law firm accounted for 29 per cent of its global active companies, according to the International Consortium of Investigative Journalists (ICIJ), which co-ordinated a year-long investigation into a trove of 11.5 million documents.
The investigation found that relatives of at least eight current or former members of China’s Politburo Standing Committee, the ruling party’s most powerful body, have been implicated in the use of offshore companies.
Such vehicles are not illegal in themselves and can be used for legitimate business needs. But they commonly feature in corruption cases, when they can be used to secretly move ill-gotten gains abroad.
Under President Xi Jinping, Beijing has launched a much-publicised anti-graft drive, but has not instituted systemic reforms such as public declarations of assets.
