An estimated $1 trillion dollars annually is siphoned out of developing countries into hidden offshore bank accounts in tax havens around the world, says Tom Cardamone, managing director of Global Financial Integrity, in this Burning Issues video. That has grave implications for the world's economic health and political security, he explains.
Global Financial Integrity has been tracking the global flow of hidden money long before the Panama Papers disclosed how deeply involved one Panama-based firm, Mossack Fonseca, was in creating shell accounts for some of the world's most prominent financial and political leaders.
Sen. Bernie Sanders warned in 2011, during debate of the Panama-U.S. free trade agreement, that "Panama is a world leader when it comes to allowing wealthy Americans and large corporations to evade U.S. taxes by stashing their cash in offshore tax havens." Global Financial Integrity is fighting for laws that would require companies to publicly disclose their true owners, which would aid governments in tracking money flows.