The Panama Papers headlines are on everywhere these days. But, not everyone exactly knows how Panama Papers leak works and on what grounds it manages its operations. Therefore it is quite easy to get muddled about the news of this a huge 2.6-terabyte documents’ leak exposing a worldwide web of tax avoidance and corruption. But here in this article, with the help of these simple pictures, we are going to elaborate how the whole system works.

We have used piggy banks in order to demonstrate the main thing happening in Panama: foreigners establishing Panamanian shell corporations to hold financial assets that doubt the individualities of their actual owners.

Let’s assume you use a piggy bank to save your quarters and place it on your closet shelf.

But your mother uses to keep an eye on how much amount you are taking out and putting in. It bothers you.

So you bought an additional piggy bank.

You took this piggy bank to Johnny’s house.

As Johnny’s mother is quite busy, so she does not keep any check on piggy banks. It allows you to secretly keep yours piggy bank there without letting anyone to check it.

 The kids in the neighborhood praise and acknowledge this think idea.

So they start putting their piggy banks in Johnny’s house too.

But there comes a day when Johnny’s mother comes to find these the piggy banks.

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She gets mad and makes calls to every kid’s paretns and tell them about their kid hiding money from them.

So, this is the entire picture of recent Panama leak and a huge number of powerful and important people concealed their piggy banks in Panama at Johnny’s house.

It does not totally mean that everyone was doing something bad. For instance, you just wished to keep privacy from your mother. But one of your neighbors, Michael, was involved in stealing money from the purse of his mother and hiding it in closet of Johnny. Similarly, Jacob was involved in stealing money of some other people’s lunch and wanted to hide this money from his parents who may inquire him about where the money comes from.

Soon we all will come to know that who was hiding his money for bad reasons and who was innocent.

But at the moment, everyone who concealed their piggy bank at Johnny’s house is in suffering, as secret piggy banks are not permissible.

So right now, journalists are searching the records to comprehend what type of activates were taking place in Panama at Johnny’s house; whether they were legal, appropriate, or a meandering of the law.