Reports: Panama firm usurped name of Red Cross to hide money

Associated Press

PARIS

The law firm at the center of the Panama offshore-accounts scandal routinely usurped the name of the Red Cross and other charities to help obscure the origin of millions of dollars in questionable funds, two newspapers involved in the probe reported Sunday.

There’s no suggestion that the charitable groups had any idea their name was being used. International Committee of the Red Cross spokeswoman Claire Kaplun told The Associated Press on Sunday that the revelation was “a total surprise and something we find extremely shocking.”

France’s Le Monde and Switzerland’s Le Matin Dimanche said Mossack Fonseca created dummy foundations with high-minded names such as the “Faith Foundation” to hold shares in about 500 offshore companies. The foundation’s beneficiary was routinely listed as “the Red Cross,” a designation which served the dual purposes of hiding the firms’ real beneficiaries and of draping them in an “NGO aura,” the papers wrote.

Mossack Fonseca didn’t immediately return an email seeking comment, but a leaked email cited by the publications appeared to lay out the firm’s reasoning.

“Given that banks and financial institutions are today asked to obtain information about economic beneficiaries, it has become difficult for us not to divulge the identity of those of the Faith Foundation’s,” the email said, according to the papers. “That’s why we’ve implemented this structure designating the ‘International Red Cross.’ It’s easier that way.”