Landmark Money Laundering Trial Commences in Panama Eight Years After Panama Papers Scandal

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Introduction

A significant milestone has been reached in the ongoing fight against financial crime and corruption as a landmark money laundering trial commences in a Panamanian criminal court. The high-profile case involves 27 individuals, including Jürgen Mossack and Ramón Fonseca Mora, founders of the now-defunct law firm at the center of the scandal.

Background

The Panama Papers investigation, conducted by the International Consortium of Investigative Journalists (ICIJ) eight years ago, exposed widespread financial crime and corruption. The current trial is centered around allegations that former employees of Mossack Fonseca set up shell companies to acquire properties in Panama using money from Brazil’s notorious “Lava Jato” corruption scheme. Additionally, the case involves accusations of bribery linked to German company Siemens.

Trial Details

The trial, expected to run until April 26, will examine allegations and determine whether former employees of Mossack Fonseca committed money laundering crimes. The court will also consider whether the creation of shell companies or trusts used for tax fraud can be considered a crime if the entities were incorporated before 2019.

Key Players

• Judge Baloisa Marquínez Morán is overseeing the case.
• Jürgen Mossack and Ramón Fonseca Mora, founders of Mossack Fonseca law firm.
• Carlos Barsallo, a lawyer who served as president of Transparency International Panama from 2019 to 2021.

Defenses

Lawyers for the defendants have argued that participation in the crime can only be considered if it occurred after the relevant regulations were implemented. The crux of the matter is whether a crime was committed in Panama or not with the regulations of the moment, according to Carlos Barsallo.

Outcome and Impact

The trial comes as Panama has adopted new anti-money laundering legislation since the Panama Papers investigation. However, the alleged crimes in this case predate parts of the law, which could complicate prosecutors’ efforts to achieve convictions. The outcome of the trial will have significant implications for Panama’s reputation and its fight against financial crime.

Live Streaming

The trial is being live-streamed on YouTube and will continue until April 26.