The finance sector in Panama is facing the worst crisis in decades post the Panama leaks. The trustworthiness of the law firms in the country is being questioned.
The Panama leaks have resulted in panic all over the country. The massive data leak from legal firms sent shockwaves across the globe. But Panama had so much to worry about the scenario as the financial services in the country faced a big crisis. The financial sector in the country heavily relies on offshore business and the implications of the leak were huge.
President addresses the crisis
The president Juan Carlos addressed the media saying that he is going to defend the image of the country as it is the most important thing at the moment. The professionals in the legal and financial sector had so much to worry about. As result, they called an emergency meeting with the Government to address their concerns. To understand how the Panama leaks affect the global economy, you need to read this article.
The leak that made headlines all over the world
The leak resulted in headlines all over the world. The media kept talking about it for several days, gaining widespread coverage in the media.
- As per the leaked documents, influential politicians and celebrities are on the list.
- The list also had names of many criminals.
- They all used the law firm Mossack Fonseca to illegally keep their money in offshore entities.
- Though many of these deals are legal, most of these dealings are categorized as illegal money laundering to escape taxes.
What happened to the breached law firm Mossack Fonseca? Well, the law firm was shut soon after. And they continue to deny wrongdoings. They hired private security guards to keep the prying media away from their office building which is the center of attention now. According to one of the founders of the law firm, the hack was limited in nature. But he added that it was a crime to hack into their databases. He insinuated that it was an attack on Panama itself.
Damage control was in full-swing. President of the country, Varela has said that he is going to defend the image of the country. He said that they will cooperate with the investigation to make sure of a transparent investigation into the allegations. The vice president of the country also said that the image of the country has affected all over the world as a result of the scandal. He added that he regrets the events. How seriously is Panama tackling this scenario? Well, high level meetings are being held with government officials at the moment, indicating their commitment to a serious investigation. If you are looking for more articles in the Finance Category, Click Here.
According to the officials, Fonseca was not among them. The association of the law firms MAG had made a statement at the press conference to address these scandals. According to the lawyers, it wasn’t the case of just one law firm. It can pose a serious threat to the trustworthiness of every lawyer working in the finance sector. They added that they are considering this as an attack to the whole legal system in the country. Therefore, lawyers are united in this to defend the legal system in their country. According to them, there are more than one million companies registered in the country anonymously. And each of these companies had paid an annual tax of $250 a year.