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Wealthy Americans Targeted by U.S. in Panama Tax-fraud Probe

  • Richard Marley
  • July 30, 2021
  • 2 minutes read
  • 55
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Financial authorities in the US obtained a legal mandate to acquire information about wealthy citizens using offshore havens in Panama to evade taxes. Regulators can now demand banks, couriers and other related institutions to provide them with necessary information to crackdown against money laundering much effectively and to implement anti money laundering compliance better.

The federal tax collection department – Internal Revenue Service – is now able to receive information regarding digital transactions and courier deliveries carried out by Americans with the law corporation, Panama Offshore Legal Services, as per the Justice Department’s statement on Thursday, July 29.

The administration further elaborated that IRS aims to identify customers involved in creating overseas accounts to transfer and store assets. Audrey Strauss, the Manhattan US Attorney stated that,

“We continue our joint efforts with the IRS to investigate tax evaders who use foreign financial accounts and sham foreign entities to hide their assets”

An order improvised by Gregory Woods, the US District Judge, permitted IRS to declare judicial writs to Clearing House Payments Company, DHL Express, Wells Fargo National Association Bank, FedEx Corporation, Federal Reserve Bank of America, United Parcel Service Inc., HSBC Bank, and the Bank of America.

The legal document proposes that the above-mentioned entities must take relevant measures to determine tax violations incurred by customers with an unknown identity. Woods also countenanced the “Jon Doe summonses” allowing US regulators and watchdogs to acquire names, financial records and other essential information of US taxpayers.

Katy Fuentes, an IRS Revenue Agent in a declaration on May 4 stated that the Panama Offshore Legal Services (POLS) used services of Bank of America, HSBC, Wells Fargo, and US Citibank to use correspondent accounts.

Suggested Reads: Online ID Verification – A Solution to Tax Refund Fraud