EXPLAINER: How US states help rich foreigners shield assets

By RANDALL CHASE
Associated Press

DOVER, Del. (AP) — A mention of “tax havens” typically conjures images of sun-soaked Caribbean escapes like the Cayman Islands or the buttoned-down banks of Switzerland. Not South Dakota. But a report detailing how world leaders and some of the planet’s wealthiest people hide their riches has drawn new scrutiny to the growth of tax havens in the United States. The release of the “Pandora Papers” report by the International Consortium of Investigative Journalists has shed light on the financial dealings of the elite and the corrupt. Along with the familiar offshore havens, the report also disclosed secret accounts in trusts scattered throughout the United States, including 81 in South Dakota, 37 in Florida and 35 in Delaware.