The European Union has threatened to sanction Panama and other nations if they do not cooperate fully to fight money laundering and tax evasion, after a leak showed that the country remains a key destination for people who want to steal and hide money.
The leaked data from the Panama scandals shows that the secretive law firm Mossack Fonseca helped thousands of individuals and companies, ranging from corrupt leaders to corrupt business men all around the world.
The greatest scandal of all time has brought down the prime minister of Iceland and raised questions about the dealings of the presidents of Argentina and Ukraine, senior Chinese politicians, famous actors, athletes and a circle of friends of Russian president Vladimir Putin, who some allege has profited indirectly from such accounts. This scandal has also revealed the rot of some top African leaders and business men.
The greatest scandal of all time has brought down the prime minister of Iceland and raised questions about the dealings of the presidents of Argentina and Ukraine, senior Chinese politicians, famous actors, athletes and a circle of friends of Russian president Vladimir Putin, who some allege has profited indirectly from such accounts. This scandal has also revealed the rot of some top African leaders and business men.
Prime Minister of the British Empire, David Cameron has acknowledged he profited from his father's investments in an offshore tax haven before being elected.
Panama is a country listed by the European Union as a country that does not cooperate on tax issues.
The European Union made a body language of been ready to hit Panama with the appropriate sanctions if they refuse to change.
But Mr Varela of Panama defended his country against what he called as a "media attack" by wealthy nations which he says are ignoring their own deficiencies and unfairly stigmatizing Panama.
Ramon Fonseca, a co-founder of the secretive Panama law firm and recently a top adviser to Mr Varela, said the only law that has been broken so far is the right to his clients' privacy. He said the biggest source of secretive shell companies is Europe and the US.
Mr Fonseca said: "If a company in England has problems nobody says anything against England, but when it happens to a firm in Panama it's a big problem and the entire world beats up on poor Panama."
He said his firm creates about 20,000 shell companies annually but also rejects about 70 to 80 clients every year due to conflicts that crop up during due diligence. "We're not perfect and some surely escape by," he said. "But in all our years in business we've never been accused or condemned by a court."
The European Union made a body language of been ready to hit Panama with the appropriate sanctions if they refuse to change.
But Mr Varela of Panama defended his country against what he called as a "media attack" by wealthy nations which he says are ignoring their own deficiencies and unfairly stigmatizing Panama.
Ramon Fonseca, a co-founder of the secretive Panama law firm and recently a top adviser to Mr Varela, said the only law that has been broken so far is the right to his clients' privacy. He said the biggest source of secretive shell companies is Europe and the US.
Mr Fonseca said: "If a company in England has problems nobody says anything against England, but when it happens to a firm in Panama it's a big problem and the entire world beats up on poor Panama."
He said his firm creates about 20,000 shell companies annually but also rejects about 70 to 80 clients every year due to conflicts that crop up during due diligence. "We're not perfect and some surely escape by," he said. "But in all our years in business we've never been accused or condemned by a court."
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