A worldwide leak of nearly 12 million documents, dubbed the Pandora Papers, reveals the financial secrets of politicians, billionaires and criminals.

The investigation is one of the largest ever carried out by journalists and exposes the global tangle of political power and secret offshore finance.

Here’s what you need to know.

What are Pandora papers?

This is the name given to the more than 11.9 million financial records, containing 2.94 terabytes of confidential information from 14 offshore service providers.

These are companies that create and operate shell companies and trusts in tax havens and secret jurisdictions around the world.

The International Consortium of Investigative Journalists (ICIJ) shared the files with 150 media partners, including ABC’s Four Corners and Background Briefing, whose reporters were among more than 600 in 117 countries and territories who spent months combing through the files.

They uncovered the secret deals and hidden assets of more than 330 politicians and senior officials in more than 90 countries and territories, including 35 current and former leaders.

The documents span five decades, with most being created between 1996 and 2020.

Are these offshore trusts and shell companies legal?

While owning an offshore company is legal and there are legitimate reasons for having one, the secrecy it offers can be a problem.

Experts say it can cover illicit cash flows, enabling corruption, money laundering, tax evasion, terrorist financing and human trafficking and other human rights violations.

Reports from the ICIJ and its partners have challenged claims by the offshore industry that service providers judiciously monitor customers and strive to act within the law.

What are the big names included?

International media partners working on the ICIJ investigation found current and former world leaders who owned secret societies and trusts: King Abdullah II of Jordan, the prime ministers of Côte d’Ivoire and the Czech Republic , the presidents of Ecuador, Kenya and Gabon and the former presidents of El Salvador, Panama, Paraguay and Honduras.

The ICIJ’s analysis of the files revealed that they contained details of the secret offshore assets of more than 130 billionaires from 45 countries, including 46 Russian oligarchs.

Other clients include bankers, major political donors, arms dealers, international criminals, pop stars, spy bosses and sports giants.

The offshore investments were linked to Bollywood actors, football stars, corrupt sports officials, a king’s lover, rival princesses, directors and movie stars, models, acclaimed designers and world-famous singers.

How does Australia get in there?

As with the Panama Papers, there are hundreds of Australians named in the leak. They include a prominent member of the board of directors, bankrupts, a criminal and several small business owners.

But the leak also highlights the role of gatekeepers, lawyers and accountants who help Australians set up complex offshore structures.

Importantly, one of the 14 service providers involved in the leak, called Asiaciti, was founded and run by an Australian accountant named Graeme Briggs.

Asiaciti also had a number of Australian clients, including former Sydney accountant Vanda Gould, who was jailed for obstructing the course of justice.

Gould was arrested in Australia’s largest tax evasion investigation, Project Wickenby. While his tax evasion charges were subsequently dropped, his clients were ordered by the Australian Tax Office (ATO) to repay more than $ 300 million.

The documents show that Asiaciti helped Vanda Gould set up a network of Samoan Superannuation offshore accounts for her clients, which some have used to reduce their taxes.

Last year, Asiaciti’s Singapore office was fined $ 1.1 million by the Monetary Authority of Singapore for failing to comply with anti-money laundering requirements.

In a statement, Asiaciti says it is committed to upholding the highest trade standards, including ensuring that they “fully comply with all laws and regulations.”

“We recognize that there have been isolated instances where we have not kept pace, and in those situations we have worked closely with regulatory authorities to address any shortcomings and promptly updated our policies. and procedures. “

Haven’t there been leaks like this before?

Not that big.

The documents contain information on more than 29,000 “beneficial owners” – these are the ultimate owners of the offshore assets.

That figure is more than double the number found five years ago in the Panama Papers investigation, which was based on a leak from a single law firm.

This time there are 14 offshore service providers operating from Anguilla, Belize, Singapore, Switzerland, Panama, Barbados, Cyprus, United Arab Emirates, Bahamas, Virgin Islands British, Seychelles and Vietnam.

Records include spreadsheets, tax returns, invoices, PowerPoint presentations, emails and company records, as well as suspicious activity reports, due diligence reports, passports, invoices of utilities and photos.

Why should we care?

Through some estimates 10 percent of total global economic output is parked in offshore financial centers, costing governments billions of dollars in lost revenue.

It is money that could be spent on roads, hospitals and schools.

Experts say poor countries are disproportionately affected by the concealment of wealth in tax havens, which robs the treasury of funds.

ICIJ Director Gerard Ryle says the Pandora Papers reveal that some international leaders who could fight overseas tax evasion have themselves secretly moved money and assets beyond the reach of tax and law enforcement authorities as their citizens struggle.

“I think what we’re seeing here is a lot of hypocrisy,” he says.

“We are now seeing the very people who could end the system themselves benefit.

“I think what it really shows is that there is a shadow economy, a shadow world that we’re not aware of, and it’s a world that enriches people who are already rich. “

Who disclosed the documents?

The source of the documents was not disclosed to media partners, but made it clear to the ICIJ that they wanted the public to see where the dirty money is really going.

Ryle says the source had two conditions to release the documents.

“First of all, the source wanted anonymity. I guess for security reasons,” he said.

“The second thing is that I was told he wanted to make these documents available to governments around the world.”

What does the ATO think?

The ATO issued a statement this morning saying it will analyze data from Pandora Papers to identify possible Australian links.

“We will definitely look at this dataset and compare it with the data we already have to identify any potential connections.”

In 2016, the leak of the Panama Papers led the ATO to investigate 800 Australians.

ATO Deputy Commissioner Will Day told the ABC it’s important to remember that offshore structures aren’t necessarily shady.

“We know most Australians are doing the right thing.” Mr. Day said.

But he cautions that it’s easy for people to be tempted to use offshore arrangements to hide assets or avoid paying taxes.

“For those who are considering these kinds of arrangements, they are not smart, sexy, or harmless. They victimize all of Australian society,” Day said.

“The victims, when people don’t pay taxes, are the everyday Australians, the millions of taxpayers who do the right thing, who declare their incomes, pay their employees and compete fairly with them. other companies.

“Don’t make it easy for other Australians to lie, cheat and steal.”

Watch the full Four Corners investigation tonight at 8:30 p.m. on ABC TV or live on the Four Corners Facebook Page.

Listen to the Background Briefing Untouchable Assets podcast, live now.