HBO Wolf of God shows offshore secrecy risks for AML teams

A new HBO documentary, “Marcial Maciel: The Wolf of God,” highlights how leaked financial records, like the Pandora Papers, exposed the hidden offshore financial network built by Marcial Maciel, the founder of the Catholic order Legion of Christ.

The series is based on years of investigative journalism and offshore leaks reporting by the International Consortium of Investigative Journalists (ICIJ) and partners.

Marcial Maciel is a four-episode documentary series that shows how Marcial Maciel Degollado rose from a small-town priest in Mexico to the founder of a powerful religious empire. The Legion of Christ grew into one of the Catholic Church’s most influential organizations, supported by wealthy patrons and generating an estimated annual budget of 650 million U.S. dollars at its peak. The series shows how the Legion expanded globally, building schools and universities across North America and Europe — many of which remain in operation today.

The Pandora Papers unveiled the Legion’s offshore financial structure. Leaked documents revealed that Maciel and his associates had quietly transferred nearly 300 million U.S. dollars into offshore structures. The funds remained undisclosed in secrecy jurisdictions like Panama as well as the British Virgin Islands, where the Legion was able to operate under minimal financial oversight, even as abuse allegations intensified.

Earlier, ICIJ reporting from the Pandora Papers shows nearly 300 million US dollars in assets devoted to the Legion hidden via New Zealand trusts and routed through secrecy jurisdictions, with some funds invested in US rental properties linked to pandemic-era evictions.

Earlier investigations had also suggested the presence of financial misconduct. In 2014, Mexican investigative journalist Raúl Olmos had uncovered the link between Panama-based offshore entities and Maciel. The Pandora Papers later provided clear evidence of the offshore leak structures that concealed the wealth and secured activity from regulators and the public.

The financial transactions by Maciel extended even beyond the offshore financial centers. The Legion also invested in property in the United States through shell companies. Some tenants claimed that they were evicted due to the COVID-19 pandemic, raising questions about the use of church funds. These structures separated ownership from liability, thereby making it hard for the tax authorities and financial regulators.

While financial secrecy contributed to the sustenance of his empire, the severity of his personal abuses was equally pronounced. In 2021, the Legion acknowledged that 170 minors had been sexually abused by 27 priests, with 60 victims directly attributable to Maciel himself. The financial networks helped shield him and the institution from scrutiny.

The Pandora Papers investigation was a global effort. ICIJ worked with media outlets including Mexicanos Contra la Corrupción y la Impunidad, Quinto Elemento Lab, Proceso, El País, and L’Espresso to track hidden financial streams. Their investigative reporting uncovered how the same offshore tools employed for tax avoidance and organized crime were also exploited to protect powerful figures and to conceal mistreatment.

Maciel’s case shows how offshore secrecy can enable misconduct inside influential institutions. For AML professionals,  the case underlines the importance of beneficial ownership transparency and cross-border financial transaction monitoring. Most of this hidden activity might never have surfaced without the Pandora Papers.