Mossack Fonseca Denies Business With “Most” Names in Panama Leaks

Mossack Fonseca, the firm named in the Panama papers leak, denied association with most people on the list.

Mossack Fonseca, the firm named in the Panama paper leaks has denied association with most of the names mentioned in the papers.

Most of the persons mentioned by you are not our clients nor do they appear in our database as persons related to the companies we formed. Due diligence procedures were carried out in accordance with the laws in place at the time the companies and cases you made reference to were incorporated and in existence. 

Mossack Fonseca to The Guardian

In a statement published in The Guardian, the law firm, has clarified that the establishment has, however, refused to comment on specific accounts.

In the biggest ever document leak, the International Consortium of Investigative Journalists’ (ICIJ) found more than 214,000 offshore companies, spread out in 21 offshore jurisdictions, belonging or connected to people from 200 different countries.

Also read: The What’s What and Who’s Who of the Panama Papers Leak

Commercial Entities Can Be for Legitimate Use as Well: Mossack Fonseca

The company, further defending existence of offshore companies, has said that there are legitimate uses of commercial entities:

• Conducting cross-border mergers and acquisitions
  
• Bankruptcies
  
• Estate planning
  
• Personal safety
  
• Restructuring and pooling of investment capital from different jurisdictions in neutral legal and tax regimes that does not benefit or disadvantage any one investor

The ICIJ has published an interactive representation of most of the people named in the leaks. It includes presidents, prime ministers, governor’s from various countries and their relatives.

The release has mentioned that there is a procedure in place to be followed before Politically Exposed Entities (PEP) are involved in business with them.

Adding that the companies mentioned in the list are 1 percent of the total 300,000 companies incorporated by Mossack Fonseca in 40 years of its existence.

Indian Connect

The list includes some very prominent Indian names, like actors Amitabh Bachchan, Aishwarya Rai Bachchan, DLF chief KP Singh and Gautam Adani’s elder brother Vinod Adani.

Also read: Indians in Panama Papers: Amitabh Bachchan, KP Singh, Aishwarya

While Aishwarya Rai Bachchan has denied the reports or ownership of any offshore firm, Kushal Pal Singh, however, has said that it was permissible under laws of Reserve Bank of India (RBI).

Finance Minister Arun Jaitley has assured appropriate action in response to the reports.

The Prime Minister has himself requested that this matter be investigated. I think it is a healthy step that this kind of exposes is being made. The multi-agency group will comprise many government agencies (CBDT, FIU, FTNTR and representative of RBI) which will monitor them. Whichever accounts are found unlawful, strict action will be taken against them.

Arun Jaitley, Finance Minister

Referring to a similar leak from HSBC in 2011, Jaitley said that 390 of the 569 account holders traced were found to be illegal.

Details came in 2011 with regard to HSBC account holders, 569 account holders have been traced, 390 were found to be illegal. Already, 154 set of prosecution has been filed with regard to HSBC account holders. 

Arun Jaitley, Finance Minister