Big Four linked to $37bn offshore risk |
Analysis shared with the U.K.'s Observer newspaper indicates that the Big Four accounting firms audit offshore companies linked to an estimated $37bn of investment in economies that the World Bank says have a "low rule of law." The report says 90% of the money is held in networks deemed to be at "high risk" of sanctions, or involved in illicit financial activity, such as corruption, organised crime, or fraud. The research, led by the University of Sussex’s Centre for the Study of Corruption in partnership with the Tax Justice Network, examined around 12,000 offshore holding companies linked to 18 major economies. Researchers say Deloitte, EY, KPMG and PwC play a significant role in offshore structures linked to Russian oligarchs and other wealthy individuals, although the findings do not prove wrongdoing.