deVere boss defends offshore industry

deVere boss defends offshore industry

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The boss of one of the world’s largest financial advisors has leapt to the defence of the offshore financial industry after a huge leak of documents lifted the lid on how the rich and powerful use tax havens to hide their wealth.

Nigel Green, chief executive of deVere Group -  which provides offshore banking advice to firms and individuals – said the allegations made in the ‘Panama Papers’ case are “not representative” of the international financial services industry.

The more-than 11 million documents allegedly connected to Panama law firm Mossack Fonseca were leaked last weekend, with some showing clients were able to launder money, dodge sanctions and avoid tax.

Mossack Fonseca’s head has denied any wrongdoing, and said his firm has fallen victim to "an international campaign against privacy".

German newspaper Suddeutsche Zeitung received a cache of confidential documents from the law firm's database, and shared them with more than 100 other international news outlets.

Over half the companies named in the leak are registered in the UK’s tax havens, with an incredible 50% coming straight from the British Virgin Islands.

However, while the leak suggests tax evasion on a grand scale, deVere’s Green says that the papers do not represent the wider financial services community.

“I do not believe that the Panama Papers allegations are representative of today’s wider international financial services industry,” he said in a note on Monday.

“The overwhelming majority of the offshore sector only provides services that are fully compliant and legal and they are used by law-abiding clients, who are simply looking for typically better returns, more investment options and greater flexibility.”

Although Green reckons most international financial centres are now well regulated, transparent and provide a much needed service, he acknowledged that the Panama Papers claims underscore that “more can still be done”.

He added that the leak should act as an opportunity to enhance the credibility of international financial centres and the sector. 

Others, including Robert Palmer, head of the Global Witness Money Laundering Campaign, says the episode marks an unprecedented opportunity to require the UK’s tax havens to open up their books to public scrutiny.

“The more information is in the open, the harder it will be for those with something to hide from using our tax havens. Corruption damages our economy and makes our country less safe,” he said.

Gareth Tilley, a barrister at Serle Court Chambers said tleaking of the Panama Papers will “certainly bring the practices of offshore financial centres out of the Chancery division and into the spotlight”, but for now it is unlikely to provoke any immediate legislative response in the UK at least.

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