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Lets say you save your quarters in a piggy bank that you keep on the shelf in your bedroom. But your mom keeps checking up on how much youre putting in and taking out. You dont like that, so what you need is a second piggy bank that you keep somewhere else. Your friend Johnnys mom is busy and she doesnt have time checking on piggy banks. You bring your spare bank over there and money can come and go without anyone being the wiser. But maybe Johnnys mom isnt really too busy. Maybe shes just lazy. Maybe shes deliberately telling the neighborhood that for a small fee, shell safeguard their piggy banks and not pay attention to what happens. That what countries like Panama and the Cayman Islands and other tax havens do. They have very weak regulations in terms of watching when money is coming into or out of bank accounts. And they have rules that make it easy to form a corporation without disclosing who owns it. So basically everyone gets to write a fake name on their piggy ban