The world is in a constant mess. Technology and the internet were the catalyst for the burst and explosion of information. Today, the internet found and opened up a can of worms. The “Panama Files” as it was dubbed, exposes the dealings of the wealthy that was once hidden behind the veil of these safe havens. Along with a German news agency and an investigation company, they uncovered how the law firm advised and assisted the setup of shell companies and transferred funds across these companies. The objective was to make sure that the owner of these funds remain anonymous.
The regulators of the world will be concern if tax fraud, illicit money, laundering and other financial crimes are involved. This incident strikes the world because the stakeholders that are of concern includes the upper echelons of the wealthy. The water has literally got murkier when the names of Putin’s aides appear in the connection. Iceland’s prime minister was one of the first casualty filing his resignation.
This incident has reaffirmed financial regulators and watchdogs that compliance, audit and transparency of the financial industry are key to their operations. Implementing these regulatory objectives are essential to give confidence to the world and the industry, and helps level the playing ground for those who goes by the rules.
To think that Dodd-Frank act was complicated to regulate the financial industry after the 2008 crisis, this “Panama Files” underlines that compliance and regulation reforms are just the beginning and will remain a persistent discussion in any government globally.