Panama Papers' offshoring network behavior

Complex systems of secrecy: the offshore networks of oligarchs

Following the invasion of Ukraine, the USA, UK, and EU governments-among others-sanctioned oligarchs close to Putin. This approach has come under scrutiny, as evidence has emerged of the oligarchs' successful evasion of these punishments. To address this problem, we analyze the role of an overlooked but highly influential group: the secretive professional intermediaries who create and administer the oligarchs' offshore financial empires. Drawing on the Offshore Leaks Database provided by the International Consortium of Investigative Journalists (ICIJ), we examine the ties linking offshore expert advisors (lawyers, accountants, and other wealth management professionals) to ultra-high-net-worth individuals from four countries: Russia, China, the USA, and Hong Kong. We find that resulting nation-level "oligarch networks" share a scale-free structure characterized by a heterogeneity of heavy-tailed degree distributions of wealth managers; however, network topologies diverge across clients from democratic versus autocratic regimes. While generally robust, scale-free networks are fragile when targeted by attacks on highly connected nodes. Our "knock-out" experiments pinpoint this vulnerability to the small group of wealth managers themselves, suggesting that sanctioning these professional intermediaries may be more effective and efficient in disrupting dark finance flows than sanctions on their wealthy clients. This vulnerability is especially pronounced amongst Russian oligarchs, who concentrate their offshore business in a handful of boutique wealth management firms. The distinctive patterns we identify suggest a new approach to sanctions, focused on expert intermediaries to disrupt the finances and alliances of their wealthy clients. More generally, our research contributes to the larger body of work on complexity science and the structures of secrecy.

Forecasting Amazon Rain-Forest Deforestation Using a Hybrid Machine Learning Model

The present work aims to carry out an analysis of the Amazon rain-forest deforestation, which can be analyzed from actual data and predicted by means of artificial intelligence algorithms. A hybrid machine learning model was implemented, using a dataset consisting of 760 Brazilian Amazon municipalities, with static data, namely geographical, forest, and watershed, among others, together with a time series data of annual deforestation area for the last 20 years (1999–2019). The designed learning model combines dense neural networks for the static variables and a recurrent Long Short Term Memory neural network for the temporal data. Many iterations were performed on augmented data, testing different configurations of the regression model, for adjusting the model hyper-parameters, and generating a battery of tests to obtain the optimal model, achieving a R-squared score of 87.82%. The final regression model predicts the increase in annual deforestation area (square kilometers), for a decade, from 2020 to 2030, predicting that deforestation will reach 1 million square kilometers by 2030, accounting for around 15% compared with the present 1%, of the between 5.5 and 6.7 millions of square kilometers of the rain-forest. The obtained results will help to understand the impact of man’s footprint on the Amazon rain-forest.