José Raul Mulino, the new president of Panama, considered on Monday that there had been an attempt to “undermine the image and competitiveness” of his country, in the context of the vast tax evasion affair of which the Panamanian law firm Mossack Fonseca was the epicentre.
Panama’s new president, José Raul Mulino, said on Monday, July 1, that the international tax evasion scandal known as the “Panama Papers,” which was centered on Panamanian law firm Mossack Fonseca, was an “international hoax” aimed at harming the country’s financial system.
“Look at the Mossack Fonseca case, which marked the beginning of the end of our financial economic model. They have just acquitted all the accused because in reality it was an international hoax aimed at undermining the image and competitiveness of our country,” said José Raul Mulino in his inauguration speech.
A Panamanian court on Friday acquitted 28 people who were accused of money laundering in connection with the law firm that served as an intermediary for prominent politicians, financial, sports and artistic figures to hide money.
Panama’s image deeply tarnished
The International Consortium of Investigative Journalists (CIJI) revealed the affair in 2016, based on the leak of 11.5 million documents from the Mossack Fonseca firm. The scandal led to its closure and Panama’s image was deeply tarnished.
“I will make sure that Panama respects and recovers its good reputation that has been arbitrarily tarnished by countries that would never apply in their territory the laws that they demand of us,” added José Raul Mulino.
On Saturday, Gerard Ryle, executive director of CIJI, said that “even though the court did not hold these defendants accountable, the lasting impact of our investigation remains.”
“By revealing hidden truths, as we did in the Panama Papers, we are giving the public the information they need to demand accountability and push for reform,” he said.
Panama has been accused of being a tax haven, which has led to it being placed on several lists, including that of the European Union.
Criminalization of tax evasion
However, successive Panamanian governments have rejected these accusations and threatened to adopt sanctions against countries and organizations that keep the country on these lists, with José Raul Mulino considering that these inscriptions are “disrespectful and aggressive.”
After the Panama Papers scandal, senior officials from several countries were forced to resign and others were convicted. Panama has made legal reforms, including criminalizing tax evasion, which was not previously considered a crime.
The country has since introduced reforms and tightened company formation requirements, allowing it to be removed from the Financial Action Task Force (FATF) “grey list” in 2023.
