Twenty-seven individuals are scheduled to stand trial on Monday for allegations of money laundering linked to the infamous “Panama Papers” tax evasion scandal. The Panama Papers, disclosed in 2016, unveiled how numerous affluent individuals worldwide hid assets in offshore companies, causing shockwaves across governments and exposing prominent figures.
The defendants facing trial in a Panamanian criminal court include Jurgen Mossack and Ramon Fonseca Mora, founders of the now-defunct law firm central to the scandal. The leaked cache of 11.5 million files from Mossack Fonseca implicated influential figures such as billionaires, politicians, and even sports celebrities.
Among those affected, Icelandic Prime Minister Sigmundur David Gunnlaugsson resigned following revelations of his family’s offshore accounts. Similarly, Pakistani Prime Minister Nawaz Sharif faced a lifetime disqualification from office due to his involvement in the documents.
The leaked files, originally provided to a German newspaper, Sueddeutsche Zeitung, were shared with the International Consortium of Investigative Journalists, triggering numerous investigations worldwide. Despite many individuals providing explanations for their offshore holdings, Mossack Fonseca announced its closure in 2018, citing irreparable damage to its reputation.
While Panama has implemented new legislation in response to the scandal, including laws against money laundering, the country remains on the European Union’s tax haven blacklist. The absence of certain anti-money laundering laws at the time of the Panama Papers’ emergence could complicate judicial efforts to secure convictions.
Tax evasion became a punishable offense in Panama only in 2019, applicable to amounts exceeding $300,000 annually. In 2023, Mossack and Fonseca faced trial in Panama for alleged money laundering in Brazil’s “Car Wash” corruption scandal involving Odebrecht construction group. The prosecution sought up to 12 years in prison for both defendants, with the verdict still pending.
The ongoing trial is anticipated to continue until April 26, according to the judiciary’s announcement.
