[JURIST] World leaders and other high profile individuals are hiding billions in off-shore accounts, according to reports Sunday that cite confidential documents leaked from a Panamanian law firm. The documents, coined the “Panama Papers” [website] by the International Consortium of Investigative Journalists, purportedly show that numerous politicians, celebrities and other wealthy individuals have hid money utilizing the legal services of Mossack Fonseca [firm website]. The Panama Papers include 11 million documents allegedly illustrating how Mossack Fonseca laundered money and helped their wealthy clients avoid tax consequences and dodge sanctions. It is reported [BBC report] that 12 heads of state are among those implicated by the Panama Papers. Mossack Fonseca has denied any wrongdoing, claiming they were the victim of a data breach and that they have not engaged in any illegal activity.

Tax evasion remains an important global issue. Last year HSBC [corporate website], a Swiss private bank, was a part of on-going string of fraudulent practice investigations since the 2009 leaks by Herve Falciani [BBC profile]. Currently HSBC is under investigation by eight nations for tax evasion [Business Insider report]. Last month the Swiss police raided HSBC’s Geneva office on suspicion of aggravated money laundering [BBC report]. In 2012 the US Department of Justice (DOJ) [official website] announced [press release] that HSBC Holdings and HSBC Bank USA [corporate website], a federally chartered banking corporation based in Virginia, agreed to forfeit USD $1.256 billion to settle a multi-year probe related to the group’s failure to enforce rules to prevent money laundering. As part of the DOJ’s deal, HSBC agreed to enter into a deferred prosecution agreement for its violation of various federal laws.