Panama Papers: How do offshore shell companies work?

The video discusses the concept of tax havens, like Panama, which exist globally to help individuals and companies avoid regulations and taxes. It explains the role of shell companies, which are often used as intermediaries to own wealth and assets. While setting up a shell company is legal and can have legitimate purposes, such as saving for a business or keeping projects confidential, they are frequently used to exploit tax and legal loopholes due to minimal identification requirements, allowing owners to evade scrutiny.

What challenges do authorities face in identifying the true owners of shell companies?

In what ways can shell companies be used for legitimate purposes?