The offices of Mossack Fonseca, the firm that is the center of a massive tax leak scandal, have been raided by Panama police officials a week after the so-called "Panama Papers" was released.
According to BBC, the raids and the operation were carried out at the offices of Mossack Fonseca in Panama City without incident or interference. The tax leak being dubbed as "Panama Papers" has exposed big names in the world such as aides close to Russian President Vladimir Putin, relatives of Chinese President Xi Jinping, soccer superstar Lionel Messi, and many more.
Time reported that the Panama Papers leak caused Iceland's Prime Minster Sigmundur Gunnlaugsson to step down from his post after he and his wife were named in the documents. British Prime Minister David Cameron also recently admitted that he benefitted from an offshore account that was made by his father.
Amid the scandal, the firm denied any wrongdoing, noting that they are a victim of a hack and that the information released is being misrepresented. The firm also took to Twitter to say that they continue to cooperate with authorities in the investigations made at their headquarters.
Per the 11 million documents leaked, it was revealed how Mossack Fonseca helped clients launder money, evade tax, and avoid sanctions. The company said they have been operating for more than 40 years and have never been accused or charged with criminal wrongdoing.
Panamanian President Juan Carlos Varela promised to work with other countries to improve transparency regarding their offshore financial industry.
Accordingly, after the operation was carried out on Tuesday, prosecutors searched for documents as they entered the officers. The attorney general's office said in a statement that the aim of the raid was to obtain "documentation linked to the information published in news articles that establish the use of the firm in illicit activities," The Guardian reported.
Tax investigators will be meeting in Paris regarding the Panama Papers. This approach is being led by the Joint International Tax Shelter Information and Collaboration, which is led by the United Kingdom.
