The trial of twenty-seven individuals for money laundering in the context of the “Panama Papers” tax evasion scandal, which exposed the extent to which affluent individuals worldwide concealed their assets in offshore corporations, is scheduled to begin on Monday.
The 2016 revelations devastated countries, exposed prominent figures, set off numerous international probes, and damaged Panama’s standing as a conduit for offshore finance.
The founders of the now-defunct legal practice at the center of the scandal, Jurgen Mossack and Ramon Fonseca Mora, are among the suspects scheduled to go on trial in a criminal court in Panama.
The leaked trove of 11.5 million files from their company Mossack Fonseca implicated influential figures including billionaires, politicians and even sports stars.
Icelandic prime minister Sigmundur David Gunnlaugsson was forced to resign after it was revealed his family had offshore accounts.
Then, after being connected to the documents, Nawaz Sharif, the prime minister of Pakistan, was permanently barred from holding office.
Mauricio Macri, the president of Argentina at the time, Spanish director Pedro Almodovar, football player Lionel Messi, and former British prime minister David Cameron were among the others accused.A German newspaper, Sueddeutsche Zeitung, received a leak of the files and shared it with the International Consortium of Investigative Journalists. Many of the individuals involved in the affair claimed they had no criminal activity and offered explanations for their offshore presence.
However, in 2018, Mossack Fonseca declared that business will close because of “irreparable damage” to its brand.
Since the scandal surfaced, Panama has passed new laws, but the Central American nation is still listed as a tax haven by the European Union.
The inexistence of certain rules prohibiting money laundering at the time of the Panama Papers releases may provide challenges for the legal system lack obtaining convictions.
Tax evasion has only been criminalized in Panama from 2019 and for sums over $300,000 per year.
Mossack and Fonseca faced trial in Panama in 2023 because to allegations of money laundering in the context of the Odebrecht construction company’s “Car Wash” corruption scandal in Brazil.
The prosecution requested up to 12 years in prison for both in that case. The sentence has not yet been announced.
The judiciary anticipates that the most recent trial will continue until April 26.
