Founders of ‘Panama Papers’ law firm on trial for money laundering
The trial of 27 people accused of money laundering in connection with revelations in the Panama Papers is set to open Monday in a Panamanian criminal court. The leaked documents revealed how many of the world's richest people stashed assets in offshore companies and avoided paying taxes.
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The trial, which was initially to open in 2021, but was put off until now, opens Monday, with Jurgen Mossack and Ramon Fonseca Mora, founders of the Mossack Fonseca law firm at the centre of the scandal, among the defendants.
11.5 million files
Mossack Fonseca closed in 2018, because it said it was unable to continue doing business due to "irreparable damage" to its reputation.
Some 11.5 million files from the company were leaked in 2016 to the German newspaper Sueddeutsche Zeitung, which shared them with the International Consortium of Investigative Journalists.
Journalists, including a number from the French daily Le Monde, revealed the offshore accounts of some of the world’s wealthiest and influential figures, and their reporting triggered investigations around the world.
Many of those implicated said they had not acted illegally.
Panama, whose reputation was tarnished by the revelations, is hoping for some redemption through the trial.
Tax evasion
Tax evasion in Panama has only been punishable since 2019, and only for amounts greater than $300,000 a year.
The fact that the laws did not exist when the Panama Papers revelations emerged could complicate efforts to convict the defendants on trial
In 2023, Mossack and Fonseca were tried in Panama for alleged money laundering in Brazil's "Car Wash" corruption scandal involving the construction group Odebrecht.
The verdict has not yet been announced, though prosecutors asked for up to 12 years in prison for both men.
The Panama Papers trial is expected to run through 26 April.
(with AFP)
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