Panama as a tax haven

Roosevelt achieved this goal with the help of William Nelson Cromwell, a well-connected US Republican lawyer and also legal counsel for JP Morgan's railroad interests.

[6] According to a 2013 academic study published by the Norwegian Center for Taxation, Panama's reputation as a tax haven began in the year 1919, when it began registering foreign ships in order to help Standard Oil avoid US taxes and regulations; other US ship owners followed, some seeking to avoid the higher wages and better working conditions imposed by US legislation such as the Seaman's Act and safety standards for sea vessels.

According to the study, "Wall Street interests helped Panama introduce lax company incorporation laws, which let anyone start tax-free, anonymous corporations, with few questions asked".

Alongside incorporation of IBCs, Panama is active in forming tax-evading foundations and trusts, insurance, and boat and shipping registration, according to the Tax Justice Network.

Such regulation has made it difficult to investigate the true extent of the Panama Papers leak, as severe criminal penalties are enacted to individuals who breach confidentiality.

[14] Pascal Saint Amans, Director of the Centre for Tax Policy and Administration in the OECD[15] said: "From the standpoint of reputation, Panama is still the only place where people still believe they can hide their money.

"[9][2] Writing for VICE News, Ken Silverstein explained the Mossack Fonseca history in the region: "These laws attracted a long line of 'dirtbags' and dictators who used Panama to hide their stolen loot, including Ferdinand Marcos, 'Baby Doc' Duvalier, and Augusto Pinochet.

"[9][3] In the United Kingdom, Private Eye used data collected from the Land Registry to create "an easily searchable online map ... of properties in England and Wales owned by offshore companies.

[17] It said "now is a good moment to draw attention to how Panama developed as a secrecy jurisdiction and how it continues to provide full service – wash, rinse and dry – to crooks and money launderers from around the world.