By TIOL News Service

WASHINGTON DC, NOV 06, 2017: THE latest to join the 'distinguished' group of offshore law firms is the Bermuda-based Appleby. Huge amount of documents have been leaked by the International Consortium of Investigative Journalists (ICIJ), revealing the magnitude of the global shadow financial system for the rich and powerful of the world.

Appleby has shown on paper that it is aware of its requirements to conduct thorough and honest customer due diligence with potential and existing clients, but the leaked files seem to show that it’s rarely putting this into practice. Law firms and other Designated Non-Financial Businesses and Professions cannot continue to be left to police themselves—jurisdictions need to require and publish public beneficial ownership information, said GFI Legal Counsel & Director of Government Affairs Heather Lowe.

Doing legitimate business in offshore secrecy jurisdictions like Bermuda is not illegal, but the Paradise Papers investigation is yet another example of how individuals and businesses — thanks to offshore law firms like Appleby and Estera - are systematically abusing the secrecy they provide said GFI President Raymond Baker.

Allegations regarding Appleby’s relationship with Glencore demonstrates this insidious relationship perfectly, from purportedly helping handle Glencore’s moves in Congo with Katanga Mine and Dan Gertler, to maintaining a ‘Glencore Room’ to help shore up the company’s claim of a Bermuda office for tax purposes. Multinational companies ought to be required to publicly report their number of employees and facilities plus their revenue on a country-by-country basis to help reveal such tax abuses, states the GFI Press Release.

GFI research estimates that opacity in the global financial system, thanks to tax haven secrecy, anonymous companies, trade-based money laundering, and lax financial crime enforcement, churns illicit financial flows (IFFs) in and out of developing countries worth at least 14.1 to 24.0 percent of developing country trade, on average per year, based on measurable sources of IFFs. This global shadow financial system bleeds the world’s poorest economies and propels crime, corruption, and tax evasion.