Mossack Fonseca to close at the end of March
Panama law firm Mossack Fonseca announced the closure because of “irreparable damage” to its reputation after its stolen confidential files became part of the so-called Panama Papers scandal.
Mossack Fonseca was founded in 1977 in Panama and focused on offshore financial services. At its peak, it employed over 600 staff in 40 offices around the world.
In 2016, the firm found itself at the center of what became known as “the Panama Papers” scandal when over 11.5 million confidential documents were stolen in an alleged cyberattack and leaked to a German newspaper. The documents allegedly showed how the firm might have helped clients evade tax and launder money.
Mossack Fonseca defended itself and its work vigorously. In the statement announcing the closure, the firm said it has not been subject to criminal investigations in any juridisctions where it operated, except for Panama.
In the announcement, the firm said “The reputational deterioration, the media campaign, the financial siege and the irregular actions of some Panamanian authorities have caused irreparable damage, whose obligatory consequence is the total cessation of operations to the public.” The statement also noted that the firm would “continue to call for justice” and cooperate with authorities to “demonstrate that no crime has been committed”.
The Latin American Lawyer spoke to two offshore specialists about the outlook for the sector shortly after the initial scandal broke. Both predicted that the offshore model will evolve with more transparency and tighter controls.
