Panama Papers Should Prompt Compliance Review

By Claire Rauscher

The “Panama Papers” are back in the news with confirmation last week that federal prosecutors are conducting a criminal investigation of individuals at the Panama-based law firm Mossack Fonseca. The Justice Department and Manhattan U.S. Attorney’s Office are investigating whether some at the law firm knowingly helped its clients launder money or evade taxes, according to the Wall Street Journal. The investigation is the latest in a series of recent international developments (most notably the Brexit vote) that underscore the need for global corporations to ensure compliance with money laundering regulations when pursuing tax strategies.

To refresh everyone’s memory, the “Panama Papers” scandal blew up in April when the

Claire Rauscher

International Consortium of Investigative Journalists released a report on 11.5 million confidential documents hacked from Mossack Fonseca and leaked to journalists. The report revealed, among other sensitive information, that Mossack Fonseca used global law firms and large banks to create hundreds of thousands of offshore shell companies in more than 200 countries and territories, including more than 6,000 shell companies linked to the U.S. Many of the countries where the shell companies were formed have no online registry. The majority of those of companies provided no information about shareholders and their identities remain secret.

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OFAC Offers Guidance on Dealings with Iran

By Jim Kearney

Jim Kearney

Under the Joint Comprehensive Plan of Action signed by the United States on January 16, 2016, certain nuclear-related secondary sanctions were lifted on Iran.  The partial lifting of sanctions in large measure does not apply to US companies, who continue to be broadly prohibited from engaging in transactions or dealings with Iran unless such activities are exempt or authorized by OFAC.

Under a general license issued by OFAC in January 2016, a non-US entity owned or controlled by a US person (a "US-Owned or Controlled Foreign Entity") is now authorized to engage in transactions, directly or indirectly, with the Government of Iran or any person subject to the jurisdiction of the Government of Iran even if such transaction would otherwise be prohibited if engaged in by a US person. This general license, however, does not authorize the re-exportation from a US-Owned or Controlled Foreign Entity of any US-origin goods, technology, or services.  

OFAC has now published guidance that clarifies the permissible activities of a US person who

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