By Ana Swanson | The Washington Post
The 11.5 million leaked documents of the Panama Papers have shone a spotlight on numerous anonymous companies that the world’s wealthy use to secretly manage their funds. These companies acted as fronts for high-profile politicians, celebrities and businessmen, allowing them to buy property, open bank accounts and trade assets without the public knowing their true identities – in some cases those of tax evaders, corrupt politicians and money launderers.
What many Americans might not realize is that foreign-owned shell companies play a big role in the U.S. economy through the real estate market. When purchased through a shell company, an offshore company or a trust, U.S. real estate offers wealthy foreigners a stable and secretive investment.
