The African Union (AU) High Level Panel (HLP) on Illicit Financial Flows (IFF) has called on African countries, including Nigeria, to investigate citizens whose names were mentioned in the International Panama Paper scandal.

In a statement signed by the chairman of the panel and a former South African President, Thabo Mbeki, stated that the number of persons involved and the amount of illicit activities exposed by the Panama Papers shows that African countries must be proactive in their actions against financial crimes.

He stated that: “Not least significant in these findings were matters relating to Tax Havens and/or Financial Secrecy Jurisdictions and the lack of transparency with regard to the Beneficial Ownership of firms.”

“The information released in the Panama Papers thus far strongly confirms the findings in the HLP report. More so, they confirm the existence of a network of offshore accounts and complex investment vehicles that drive tax avoidance and evasion. Until now, warnings against such vehicles have been taken lightly.”

He called on other countries in the continent to launch investigations into the reports, saying that anti-graft agencies should investigate beyond the Panama papers.

“The exposures contained in the Panama Papers is a massive blow to financial secrecy, which must be encouraged.”

“The undeniable fact is that the Illicit Financial Flows which derive from tax evasion deserve our full attention both continentally and globally. As revealed within the Panama Papers, the fourth most used Tax Haven by this firm is an African country. Worse still, the reports show that this firm only knew the identities of the real owners of just 204 of 14,086 companies it had incorporated in this very country.”

“Indeed, we must not rest under the illusion that the issue of Tax Havens does not directly affect Africa and the world at large.”

While calling for an increased pressure on countries that opaque financial laws, Mbeki stated that: “As stressed in the AU/ECA HLP Report on IFFs, the global community in all of its institutions, including parliaments must take all necessary steps to eliminate secrecy jurisdictions, introduce transparency in financial transfers and crack down on money laundering.”

“Until all countries begin to work together to combat IFFs in all its forms, including by closing down Tax Havens and combating the lack of transparency of ownership and control of companies that can hold assets and open bank accounts, there will always be a cavernous opportunity for the exploitation of tax laws at all levels and in all countries for negative purposes.”

“The Panama firm in question, which all would hope to see receive the deserved justice if found guilty, has responded to the exposures by stating that nothing in the documents released suggests that it has been involved in any illegal practices. Sadly, this may very well be the case legally given the current incomplete global architecture for tackling IFFs, which should include binding international Treaties.”

He further stated that: “We have allowed the practice to persist which is made possible among others by the existence of Tax Havens/Financial Secrecy Jurisdictions.”

“Now is the time for the global community to act in a firm and comprehensive manner to end the Illicit Financial Flows and close down the Tax Havens/Financial Secrecy Jurisdictions which serve as the domicile of these Illicit Financial Flows,” he added.