We’re Linked To Panama Papers
Govt agencies will investigate whether laws have been broken
Fijians have been named in recent leaked Panama Papers of 2016 and Offshore Leaks of 2013. It has prompted the Fiji Revenue and Customs Authority (FRCA) and the Financial Intelligence Unit (FIU) to investigate whether laws had been broken. The Panama Papers are 11.5 million leaked documents that detail financial and attorney–client information for more than 214,488 offshore entities. Among world leaders linked to the papers include British Prime Minister John Cameron and Russian President Vladimir Putin. The Offshore Leaks 2013 revealed a large part of the world’s wealth was tied up in secret offshore institutions.
FRCA acting chief executive officer Visvanath Das yesterday said: “FRCA was profiling the companies and individuals named and are working on it. Beyond that, we will not be in a position to comment.” FIU director Razim Buksh said: “FIU will now analyse this information and will profile it against FIU database. “FIU will work with our partner agencies such as FRCA and Reserve Bank of Fiji and if need be later link with our international partners to link this information. FIU will share results of our analysis with FRCA.” One of the individuals named in the Panama Papers is Orisi Vukinavanua. Mr Vukinavanua has been listed as a shareholder in Total Confidence Holdings Limited, a company based in British Virgin Islands. It also has an office in Hong Kong. Mr Vukinavanua said yesterday he ceased being a shareholder in October 2014.
“It was an oil refinery project in Fiji but I had differences with other shareholders Dennis Lim and got out of it,” Mr Vukinavanua said. Local resort Hideaway Resort, Korolevu,
has been named in an earlier investigation - the Offshore Leaks. This has come as a surprise for its owners - the Fiji Teachers Union Co-operative and Thrift Limited. General Manager Chandar Dutt said since FTU took over the resort, all transactions had been documented and all taxes had been and “are still being paid.” Three local addresses have also been revealed in the Panama Papers. Investigations will also be undertaken on which companies are operating out of these addresses.
However, Fiji has very stringent anti-money laundering laws in place and while some of the companies named in the leaks were deregistered years ago, FIU is still mandated by law to investigate whether any money was taken out of Fiji without proper authorisation.
The Law: Part Six of the new Companies Act deals with registration and operations of foreign companies. A foreign company means a company incorporated outside Fiji that establishes a place of business in Fiji or a foreign incorporated body but doing business in Fiji.
Fiji has strict licensing requirements for establishment and operation of banking business in Fiji under the Banking Act.
At this stage, it is highly unlikely that Fiji has been a hub for shell companies, however, a point to note is that the companies named in these leaks were registered offshore decades ago. Our current laws are so tight that any attempts to launder money out of Fiji will be very easily found out by FIU. Fiji is not a tax haven meaning that full financial disclosures are needed. Countries that are tax havens in the Pacific Islands are: Cook Islands, Marshall Islands, Nauru, Niue, Samoa and Vanuatu.
What does this leak mean for Fiji?
FIU is mandated by law to investigate any information that may suggest our Exchange Control Act was breached.
FIU is investigating any possibilities that Fijians or Fijian companies were involved in converting black money (cash obtained through illegal activities) to white money (cash from legal activities).
FIU is investigating any possibilities that Fijians or Fijian companies were involved in converting black money (cash obtained through illegal activities) to white money (cash from legal activities).