Trial of 27 defendants in the “Panama Papers” tax evasion scandal begins

On April 8, the Panama Criminal Court began the trial of 27 defendants on money laundering charges related to the tax evasion scandal known as the "Panama Papers".

Among the defendants are Jurgen Mossack and Ramon Fonseca Mora, founders of the now-defunct law firm Mossack Fonseca at the center of the scandal.

In 2016, a total of 11.5 million data files from Mossack Fonseca were leaked to the German newspaper Sueddeutsche Zeitung, which shared them with the International Consortium of Investigative Journalists.

The leaked data implicated a host of high-profile figures and senior officials from many countries, shaking governments, sparking investigations around the world and dealing a heavy blow to Panama's reputation as an offshore financial center.

Icelandic Prime Minister Sigmundur David Gunnlaugsson has resigned after leaked data revealed his family had offshore accounts.

The then Prime Minister of Pakistan, Nawaz Sharif, was removed from office for life after being implicated in the documents.

Among the other figures involved are former British Prime Minister David Cameron, football star Lionel Messi, former Argentine President Mauricio Macri, Spanish filmmaker Pedro Almodovar...

In 2018, Mossack Fonseca announced it would close due to "irreparable damage" to its reputation.

Following the scandal, Panama passed new laws aimed at financial transparency, but the Central American country remains on the European Union's (EU) blacklist of "tax havens".

Panama only started penalizing tax evasion in 2019 and only applies to tax evasion amounts greater than $300,000/year.

In 2023, Mossack and Fonseca were tried in Panama on money laundering charges in the Brazilian "Car Wash" corruption scandal involving the construction group Odebrecht.

Prosecutors are seeking the maximum 12-year prison sentence for the two men in that case. The court has not yet handed down a sentence in that case.