Panama Papers

==Responses in Panama==
At 5:00 am on April 3, as the news first broke, [[Ramón Fonseca Mora]] told television channel [[TVN (Panama)|TVN]] he "was not responsible nor he had been accused in any tribunal".<ref name="tvn-2.com">{{cite web |url=http://www.tvn-2.com/nacionales/Fonseca-Mora-Red-Delitos-Financieros-PanamaPapers_0_4452304801.html |title=Exclusiva: 'No soy responsable ni he sido acusado en un tribunal', Fonseca Mora |website=TVN |access-date=April 26, 2016 |url-status=live |archive-url=https://web.archive.org/web/20160506225050/http://www.tvn-2.com/nacionales/Fonseca-Mora-Red-Delitos-Financieros-PanamaPapers_0_4452304801.html |archive-date=May 6, 2016 |date=April 3, 2016 }}</ref>

He said the firm was the victim of a hack and that he had no responsibility for what clients did with the offshore companies that they purchased from Mossack Fonseca, which were legal under Panamanian law.<ref name="tvn-2.com" /> Later that day, the Independent Movement (MOVIN){{NoteTag|MOVIN: an independent political movement based in Panama, focused on influencing and monitoring the independence, efficiency and transparency of government institutions and their management.<ref>{{cite news |title = Civil Society {{!}} Policy Areas {{!}} ERCAS – European Research Centre for Anti-Corruption and State-Building |url = http://www.againstcorruption.eu/policy_areas/civil-society/?post_type= |website = www.againstcorruption.eu |url-status=live |archive-url = https://web.archive.org/web/20161110145206/http://www.againstcorruption.eu/policy_areas/civil-society/?post_type= |archive-date=November 10, 2016 }}</ref>}} called for calm, and expressed hope that the Panamanian justice system would not allow the culprits to go with impunity.<ref name="tvn-2.com" />

===Public officials===
By April 8, the government understood that media reports were addressing tax evasion and not attacking Panama. The then-president Varela met on Wednesday April 7, with CANDIF, a committee of representatives from different sectors of the Panamanian economy which includes the Chamber of Commerce, Chamber of Industry and Agriculture, the National Lawyers Association, the International Lawyers Association, the Banking Association and the Stock Exchange, and entered full [[crisis management]] mode.<ref>{{cite web |url=http://www.bna.com/panama-launches-crisis-n57982069699/ |title=Panama Launches Crisis Talks in Wake of Tax Haven Leaks |website=www.bna.com |access-date=April 26, 2016 |url-status=live |archive-url=https://web.archive.org/web/20160508162514/http://www.bna.com/panama-launches-crisis-n57982069699/ |archive-date=May 8, 2016 }}</ref> On the same day he announced the creation of a new judiciary tribunal and a high-level commission led by Nobel Prize Laureate [[Joseph Stiglitz]]. There were accusations that foreign forces were attacking Panama because of Panama's "stable and robust economy".<ref>{{Cite web|url=https://www.telemetro.com/nacionales/2016/04/14/panama-condiciones-favorables-inversionistas-estrada/1450653.html|title="Nos atacan porque Panamá tiene condiciones favorables para inversionistas", Estrada|first=Nimay|last=González|date=April 14, 2016|website=Telemetro|access-date=January 11, 2020|archive-url=https://web.archive.org/web/20200111165213/https://www.telemetro.com/nacionales/2016/04/14/panama-condiciones-favorables-inversionistas-estrada/1450653.html|archive-date=January 11, 2020|url-status=live}}</ref>

[[Isabel Saint Malo]] de Alvarado, then-Vice President of Panama, said in an [[op-ed]] piece published April 21 in ''The Guardian'' that then-President [[Juan Carlos Varela]] and his administration have strengthened Panama's controls over [[money-laundering]] in the twenty months they had been in power, and that "Panama is setting up an independent commission, co-chaired by the Nobel laureate [[Joseph Stiglitz]], to evaluate our financial system, determine best practices, and recommend measures to strengthen global financial and legal transparency. We expect its findings within the next six months, and will share the results with the international community."<ref>{{cite news |url=https://www.theguardian.com/commentisfree/2016/apr/21/panama-papers-tax-haven-financial-transparency |title=Don't blame Panama for the Panama Papers |author=Isabel Saint Malo de Alvarado |date=April 21, 2016 |access-date=April 23, 2006 |work=The Guardian |url-status=live |archive-url=https://web.archive.org/web/20160422065303/http://www.theguardian.com/commentisfree/2016/apr/21/panama-papers-tax-haven-financial-transparency |archive-date=April 22, 2016 }}</ref>

However, in early August 2016, Stiglitz resigned from the committee because he learned that the Panamanian government would not commit to making their final report public. He said that he had always "assumed" that the final report would be transparent.<ref>{{Cite web|title=Panama Papers Commission 'Will Have No Credibility,' Former Chair Joseph Stiglitz Says|url=https://abcnews.go.com/Business/International/panama-papers-commission-credibility-chair-joseph-stiglitz/story?id=41203846|access-date=August 19, 2022|website=ABC News|language=en}}</ref>

On April 8, then-President Varela denounced France's proposal to return Panama to a list of countries that did not cooperate with information exchange.<ref>{{cite news |title=Panama threatens France over 'papers' blacklist |url=http://en.rfi.fr/france/20160413-panama-threatens-france-over-papers-blacklist |access-date=April 26, 2016 |work=RFI    |date=April 13, 2016 |language=en |location=France |url-status=live |archive-url=https://web.archive.org/web/20160423153524/http://en.rfi.fr/france/20160413-panama-threatens-france-over-papers-blacklist |archive-date=April 23, 2016 }}</ref> Minister of the Presidency Alvaro Alemán categorically denied that Panama is a tax haven, and said the country would not be a scapegoat.<ref name=franca>{{cite web |url=http://www.tvn-2.com/nacionales/Panama-Papers-Francia-ParaisoFiscal-OCDE_0_4453804624.html |title=Panamá se defiende y califica de 'irrespetuosas' declaraciones de la OCDE |date=April 5, 2016 |access-date=April 5, 2016 |url-status=live |archive-url=https://web.archive.org/web/20160407224026/http://www.tvn-2.com/nacionales/Panama-Papers-Francia-ParaisoFiscal-OCDE_0_4453804624.html |archive-date=April 7, 2016 }}</ref> Alemán said that talks with the French ambassador to Panama had begun.<ref name=franca />

On April 25, a meeting of the Panamanian and French finance ministers resulted in an agreement under which Panama will provide information to France about French nationals with taxable assets in the country.<ref>{{Cite news |url=https://www.reuters.com/article/us-panama-tax-france-idUSKCN0XM21L |title=Panama's finance minister faces French counterpart in Paris over tax spat |date=April 25, 2016 |newspaper=Reuters |access-date=April 26, 2016 |url-status=live |archive-url=https://web.archive.org/web/20160426183038/http://www.reuters.com/article/us-panama-tax-france-idUSKCN0XM21L |archive-date=April 26, 2016 }}</ref><ref>{{cite web |url=http://laestrella.com.pa/panama/politica/panama-francia-pactan-contra-evasion/23936355 |title=Panamá y Francia pactan contra evasión |date=April 26, 2016 |website=La Estrella de Panamá |access-date=April 26, 2016 |url-status=live |archive-url=https://web.archive.org/web/20160427105804/http://laestrella.com.pa/panama/politica/panama-francia-pactan-contra-evasion/23936355 |archive-date=April 27, 2016 }}</ref><!-- can't understand this bad translation, and who is this anyway?: Saul Mendez, leader of Suntracs said this scandal are involved high officials of the government, but these will not be achieved for justice.
"It is necessary that the flag of the original to sweep the rot that is increasingly felt in government structures constituent to rise" he said.<ref>{{cite web |url=http://elsiglo.com/panama/renuncias-exterior-panama-pasa-nada/23934262 |title=Renuncias en el exterior y en Panamá no pasa nada |date=April 16, 2016 |access-date=May 2, 2016}}</ref> -->

The Minister of Economy and Finance of Panama, Dulcidio de la Guardia, formerly an offshore specialist at Mossack Fonseca competitor Morgan & Morgan, said the legal but often "murky" niche of establishing offshore accounts, firms and trusts make up "less than half a percentage point" of Panama's [[GDP]].  He appeared to suggest that the publication of the papers was an attack on Panama because of the high level of economic growth that the country had shown.<ref>{{Cite news |url=http://www.ft.com/cms/s/0/6066b3d8-fce1-11e5-a31a-7930bacb3f5f.html |title=Panamanians pained by corruption claims |last=Webber |first=Jude |date=April 7, 2016 |newspaper=Financial Times |issn=0307-1766 |access-date=April 26, 2016 |url-status=live |archive-url=https://web.archive.org/web/20160411020422/http://www.ft.com/cms/s/0/6066b3d8-fce1-11e5-a31a-7930bacb3f5f.html |archive-date=April 11, 2016 }}</ref>

Eduardo Morgan of the Panamanian firm Morgan & Morgan accused the OECD of starting the scandal to avoid competition from Panama with the interests of other countries.<ref>{{cite web |url = http://www.tvn-2.com/nacionales/Eduardo-Morgan-detras-OCDE_0_4453804580.html |title=Eduardo Morgan: "detrás de todo esto está la OCDE" |date=April 5, 2016 |access-date=April 6, 2016 |url-status=live |archive-url = https://web.archive.org/web/20160407224237/http://www.tvn-2.com/nacionales/Eduardo-Morgan-detras-OCDE_0_4453804580.html |archive-date=April 7, 2016 }}</ref> The Panama Papers affect the image of Panama in an unfair manner and have come to light not as the result of an investigation, but of a hack, said Adolfo Linares, president of the Chamber of Commerce, Industries and Agriculture of Panama (Cciap).<ref>{{cite web |url = http://www.tvn-2.com/nacionales/Panama-Papers-difamacion-escandalo_0_4453804578.html |title='Panama Papers', una campaña de difamación al país: Adolfo Linares |date=April 5, 2016 |access-date=April 6, 2016 |url-status=live |archive-url = https://web.archive.org/web/20160407224246/http://www.tvn-2.com/nacionales/Panama-Papers-difamacion-escandalo_0_4453804578.html |archive-date=April 7, 2016 }}</ref>

The Colegio Nacional de Abogados de Panama (CNA) urged the government to sue.<ref>{{cite web |url=http://www.nextvpanama.com/noticias/gremio-de-abogados-insta-gobierno-panameno-demandar-por-dano-de-imagen-33991 |title=Gremio de abogados insta a Gobierno panameño demandar por daño de imagen |date=April 6, 2016 |access-date=April 7, 2016 |url-status=dead |archive-url=https://web.archive.org/web/20160407224026/http://www.nextvpanama.com/noticias/gremio-de-abogados-insta-gobierno-panameno-demandar-por-dano-de-imagen-33991 |archive-date=April 7, 2016 }}</ref> Political analyst Mario Rognoni said that the world perceives Panama as a tax haven. The government of then-President [[Juan Carlos Varela]] might become implicated if he tries to cover up for those involved, Rognoni said.<ref>{{cite web |url=http://elsiglo.com/panama/panama-sale-afectado/23932073 |title=Panamá sale afectado |date=April 5, 2016 |access-date=April 7, 2016 |url-status=live |archive-url = https://web.archive.org/web/20160407224622/http://elsiglo.com/panama/panama-sale-afectado/23932073 |archive-date=April 7, 2016 }}</ref>

Economist Rolando Gordon said the affair hurts Panama, which has just emerged from the greylist of the [[Financial Action Task Force on Money Laundering|FATF]], and added that each country, especially Panama, must conduct investigations and determine whether illegal or improper acts were committed.<ref>{{cite web |url = http://elsiglo.com/panama/repercucion-economica/23932074 |title=Repercución económica |date=April 5, 2016 |access-date=April 7, 2016 |url-status=live |archive-url = https://web.archive.org/web/20160407224643/http://elsiglo.com/panama/repercucion-economica/23932074 |archive-date=April 7, 2016 }}</ref>

Panama's Lawyers Movement called the Panama Papers leak "cyber bullying" and in a press conference condemned it as an attack on the 'Panama' brand. Fraguela Alfonso, its president, called it a direct attack on the country's financial system.

<blockquote>I invite all organized forces of the country to create a great crusade for the rescue of the country's image.</blockquote>

The law firm Rubio, Álvarez, Solís & Abrego also reacted and in a press release said that "In recent decades Panama has been in the most important financial and service centers of Latin America and the entire world. As a result, all kinds of attacks on our service system have been attempted."<ref>{{cite web |url=http://elsiglo.com/panama/repudian-ataque-imagen-pais/23932263 |title=Repudian ataque a imagen del país |date=April 6, 2016 |access-date=April 7, 2016 |archive-url=https://web.archive.org/web/20160407214658/http://elsiglo.com/panama/repudian-ataque-imagen-pais/23932263 |archive-date=April 7, 2016 |url-status=live }}</ref>

Offshore companies are legal, said Panamanian lawyer and former controller of the republic Alvin Weeden; illegality arises when they are used for money laundering, arms smuggling, terrorism, or tax evasion.<ref>{{cite web |url = http://elsiglo.com/panama/sociedades-offshore/23932072 |title=Sociedades offshore |date=April 5, 2016 |access-date=April 7, 2016 |url-status=live |archive-url=https://web.archive.org/web/20160407224715/http://elsiglo.com/panama/sociedades-offshore/23932072 |archive-date=April 7, 2016 }}</ref>

On October 19, 2016, it became known that a government executive had spent 370 million U.S. dollars in order to "clean" the country's image.<ref>{{cite web |url=http://laestrella.com.pa/panama/nacional/ejecutivo-utiliza-370-para-limpiar-imagen/23966616 |title=Ejecutivo utiliza $370 mil para 'limpiar' imagen |date=October 19, 2016 |access-date=October 19, 2016 |url-status=live |archive-url = https://web.archive.org/web/20161020105502/http://laestrella.com.pa/panama/nacional/ejecutivo-utiliza-370-para-limpiar-imagen/23966616 |archive-date=October 20, 2016 }}</ref>

On October 22, 2016, during a state visit to Germany, Varela told journalist Jenny Pérez, of [[Deutsche Welle]] that there had been "progress" in transparency and many agreements to exchange tax information, and that [[tax evasion]] was a global problem. Asked about his ties with Ramón Fonseca Mora, managing partner of the firm Mossack Fonseca, he acknowledged that he is a friend.<ref>{{cite web |url = http://www.tvn-2.com/nacionales/Varela-reacciona-cuestionado-Papeles-Panama-entrevista-Jenny-Perez-Alemania_0_4603789596.html |title=La entrevista sobre "Panama Papers" que puso contra las cuerdas al presidente Varela |date=October 22, 2016 |access-date=October 23, 2016 |url-status=live |archive-url = https://web.archive.org/web/20161023184105/http://www.tvn-2.com/nacionales/Varela-reacciona-cuestionado-Papeles-Panama-entrevista-Jenny-Perez-Alemania_0_4603789596.html |archive-date=October 23, 2016 }}</ref>

===Law enforcement===
The Procuraduría de la Nación announced that it would investigate Mossack Fonseca and the Panama papers.<ref>{{cite web |url=http://elsiglo.com/panama/investigara-mossack-fonseca/23931813 |title=MP investigará a Mossack Fonseca& – El Siglo |date=April 4, 2016 |access-date=April 5, 2016 |url-status=live |archive-url = https://web.archive.org/web/20160405164458/http://elsiglo.com/panama/investigara-mossack-fonseca/23931813 |archive-date=April 5, 2016 }}</ref>
On April 12, the newly formed Second Specialized Prosecutor against Organized Crime raided Mossack Fonseca and searched their Bella Vista office as part of the investigation initiated by the Panama Papers. The Attorney General's office issued a press release following the raid, which lasted 27 hours,<ref name=Telraid>{{cite news |url = https://www.telegraph.co.uk/news/2016/04/23/investigators-raid-property-of-panama-papers-law-firm-mossack-fo/ |title=Investigators raid property of 'Panama Papers' law firm Mossack Fonseca |agency=Reuters |date=April 23, 2016 |access-date=April 23, 2016 |newspaper=The Telegraph |url-status=live |archive-url = https://web.archive.org/web/20160423184402/http://www.telegraph.co.uk/news/2016/04/23/investigators-raid-property-of-panama-papers-law-firm-mossack-fo/ |archive-date=April 23, 2016 }}</ref> stating that the purpose was "to obtain documents relevant to the information published in news articles that establishes the possible use of the law firm in illegal activities".<ref>{{cite web |url = http://www.tvn-2.com/nacionales/judicial/Registran-Mossack-Fonseca-Panama-Papers-panama-papers-efecto-panama-corrupcion-paraisos-fiscales_0_4459054130.html |title=Fiscalía panameña realizó allanamiento en Mossack Fonseca |date=April 12, 2016 |access-date=April 13, 2016 |url-status=live |archive-url = https://web.archive.org/web/20160414193125/http://www.tvn-2.com/nacionales/judicial/Registran-Mossack-Fonseca-Panama-Papers-panama-papers-efecto-panama-corrupcion-paraisos-fiscales_0_4459054130.html |archive-date=April 14, 2016 }}</ref> The search ended without measures against the law firm, confirmed prosecutor Javier Caraballo of the Second Prosecutor Against Organized Crime.<ref>{{cite web |url=http://elsiglo.com/panama/evita-referirse-futuro-mossack-fonseca/23933897 |title = MP evita referirse al futuro de Mossack Fonseca |date=April 14, 2016 |access-date=May 2, 2016 |url-status=live |archive-url = https://web.archive.org/web/20160415111605/http://elsiglo.com/panama/evita-referirse-futuro-mossack-fonseca/23933897 |archive-date=April 15, 2016 }}</ref>

On April 22 the same unit raided another Panama location and "secured a large amount of evidence".<ref name=Telraid />

The Municipality of Regulation and Supervision of Financial Subjects [not the Ministry of Economy and Finance (MEF)] initiated a special review of the law firm Mossack Fonseca to determine whether it had followed tax law. Carlamara Sanchez, in charge of this proceeding, said at a press conference that the quartermaster had come to verify whether the firm had complied since April 8 with [[due diligence]], customer knowledge, the final beneficiary and reporting of suspicious transactions to Financial Analysis Unit (UAF) operations. She said that Law 23 of 2015 empowers regulation and supervision and said some firms had been monitored since late last year with special attention after the Panama Papers, and noted that the law carries fines $5,000 to $1 million or even suspension of the firm.<ref>{{cite web |url = http://elsiglo.com/panama/realiza-auditoria-firma-mossack-fonseca/23934086 |title=MEF realiza auditoría a firma Mossack Fonseca |date=April 15, 2016 |access-date=May 2, 2016 |url-status=live |archive-url = https://web.archive.org/web/20160417003806/http://elsiglo.com/panama/realiza-auditoria-firma-mossack-fonseca/23934086 |archive-date=April 17, 2016 }}</ref>

The ICIJ investigation of Mossack Fonseca was reported to the Public Ministry. Samid Dan Sandoval, former candidate for mayor of Santiago de Veraguas (2014), filed the legal action against the journalists and all those who had participated. He said the project name damaged the integrity, dignity and sovereignty of the country and that the consortium would have to assume legal responsibility for all damage caused to the Panamanian nation.<ref>{{cite web |url = http://elsiglo.com/panama/icij-puede-investigado/23933682 |title=ICIJ no puede ser investigado |date=April 13, 2016 |access-date=May 2, 2016 |url-status=live |archive-url = https://web.archive.org/web/20160414104744/http://elsiglo.com/panama/icij-puede-investigado/23933682 |archive-date=April 14, 2016 }}</ref>

A Change.org petition requested the ICIJ stop using the name of Panama as in the Panama Papers. The request said the generally-accepted name for the investigation "damage(d) the image" of Panama.<ref>{{cite web |url = http://www.telemetro.com/nacionales/Elevan-peticion-internet-Panama-Papers_0_904710164.html |title=Elevan petición en internet para que se cambie el nombre de Panama Papers |date=April 4, 2016 |access-date=May 2, 2016 |url-status=live |archive-url=https://web.archive.org/web/20160513150047/http://www.telemetro.com/nacionales/Elevan-peticion-internet-Panama-Papers_0_904710164.html |archive-date=May 13, 2016 }}</ref>

=== Suspension of investigation ===
Attorney General of Panama Kenia Isolda Porcell Diaz announced on January 24, 2017, that she was suspending the investigations against Mossack Fonseca because it filed an appeal for protection of constitutional rights before the First Superior Court of Justice of Panama and requested that he deliver all the original documents to issue a judgment.<ref>{{cite web |url=http://gestion.pe/politica/panama-suspendera-investigacion-sobre-panama-papers-2180461 |title=Panamá suspenderá investigación sobre Panama Papers |website=gestion.pe |date=January 24, 2017 |url-status=dead |archive-url=https://web.archive.org/web/20170202041325/http://gestion.pe/politica/panama-suspendera-investigacion-sobre-panama-papers-2180461 |archive-date=February 2, 2017 |access-date=January 25, 2017 }}</ref><ref>{{cite web |url = https://www.laprensalibre.cr/Noticias/detalle/101002/panama-suspendera-investigacion-sobre-panama-papers |title = Panamá suspenderá investigación sobre Panama Papers – laprensalibre.cr |website = www.laprensalibre.cr |url-status = dead |archive-url = https://web.archive.org/web/20170202024609/https://www.laprensalibre.cr/Noticias/detalle/101002/panama-suspendera-investigacion-sobre-panama-papers |archive-date = February 2, 2017 |access-date = January 25, 2017 }}</ref><ref>{{cite web |url = http://cdn8.larepublica.pe/mundo/america/842510-panama-papers-procuradora-general-anuncio-suspension-de-investigacion |title = Panamá Papers: procuradora general anunció suspensión de investigación |date=January 24, 2017 |url-status=dead |archive-url = https://web.archive.org/web/20170202025907/http://cdn8.larepublica.pe/mundo/america/842510-panama-papers-procuradora-general-anuncio-suspension-de-investigacion |archive-date=February 2, 2017 }}</ref>{{clarify|date=October 2017}}

===Charges===
Mossack and Fonseca were detained on February 8, 2017, on money-laundering charges.<ref>{{cite news|url=http://mobile.reuters.com/article/amp/idUSKBN15Q0TK|agency=Reuters|author=Elida Moreno|date=February 11, 2017|access-date=November 12, 2017|title=Panama detains Mossack Fonseca founders on corruption charges|website=mobile.reuters.com|archive-url=https://web.archive.org/web/20171114040345/http://mobile.reuters.com/article/amp/idUSKBN15Q0TK|archive-date=November 14, 2017|url-status=live}}</ref>

===Demise of Mossack Fonseca===
In March 2018, [[Mossack Fonseca]] announced that it would cease operations at the end of March due to "irreversible damage" to their image as a direct result of the Panama Papers.<ref>{{cite web|url=https://www.theguardian.com/world/2018/mar/14/mossack-fonseca-shut-down-panama-papers|title=Mossack Fonseca law firm to shut down after Panama Papers tax scandal|first1=Nicola|last1=Slawson|author2=agencies|date=March 14, 2018|website=www.theguardian.com|access-date=March 16, 2018|archive-url=https://web.archive.org/web/20180314222823/https://www.theguardian.com/world/2018/mar/14/mossack-fonseca-shut-down-panama-papers|archive-date=March 14, 2018|url-status=live}}</ref>