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Reports: Panama firm usurped name of Red Cross to hide money Reports: Panama firm usurped name of Red Cross to hide money
(35 minutes later)
PARIS — Newspapers working on the mammoth leak of offshore data say the Panamanian firm at the center of the scandal used the name and reputation of the International Committee of the Red Cross to help obscure the origin of millions of dollars in questionable money. 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 investigation reported Sunday.
There’s no suggestion that the humanitarian group knew its name was used in this way. Red Cross spokeswoman Claire Kaplun said Sunday that the revelation was “extremely shocking.” There’s no suggestion that the charitable groups had any idea their name was being used in this way. 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 say Mossack Fonseca created dummy foundations to hold shares in some 500 offshore companies. The foundations claimed beneficiaries such as the Red Cross, a maneuver that kept the companies’ true owners anonymous, while cloaking them in an “NGO aura.” 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 around 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. 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.”
Another email cited by the papers suggests Mossack Fonseca deliberately kept the Red Cross in the dark about the maneuver.
“According to Panama law, the beneficiaries of a foundation can be used without knowing it,” the email said, according to the papers. “That means the International Red Cross doesn’t know about this arrangement.” 
Kaplun, the Red Cross spokeswoman, said that using the group’s name or logo without its permission is barred by international law — and could put the group’s staff in jeopardy.
“We work in conflict zones. We work without weapons. Our protection is our name, our emblem, the faith that people have in our reputation,” she said in a telephone interview.
“Let’s say this money was linked to a warring party in a conflict. Imagine what consequences that could have.”
Copyright 2016 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.Copyright 2016 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.