Mossack Fonseca is a law firm in Panama whose massive database of client records was recently leaked. The leak, referred to as The Panama Papers, revealed tax evasion and money laundering on a global scale. The Panama Papers included the names and information of high-profile politicians and wealthy individuals from countries all over the world. The leak provided an unprecedented glimpse into the inner workings of law firms, banks and investors with offshore accounts. 

Recently, eleven million documents were released without authorization in a leak being referred to as the Panama Papers. The documents came from one of the most secretive companies in the world -- a Panamanian law firm called Mossack Fonseca.  The leaked documents provide a comprehensive paper trail showing how tax havens have been used to hide wealth and avoid tax liability. The documents involve clients from throughout the world who used offshore tax havens, including many current or former heads of state, as well as at least 60 people who have strong ties to current or former world leaders.

Bank J. Safra Sarasin AG is a Swiss Bank that first formed in 2013 through the merger of two other Swiss financial institutions.  With branches in Geneva, Berne, Lucerne, Zurich, and Lugano, Safra Sarasin is a formidable presence in the offshore banking industry. It also just sold out its customers to the Department of Justice so it wouldn't be prosecuted for its own role in helping U.S. citizens evade their tax obligations to the IRS.

Everyone who is a U.S. citizen with an offshore bank account has to file an annual Report of Foreign Bank and Financial Accounts (FBAR). Even if you live abroad, you have to file this report. If you don't file FBARs, you can face penalties. Those penalties could include prosecution and very substantial fines if the IRS discovers the account on its own and begins to take action. With many offshore banks providing information to the government, many offshore accounts are being discovered.